“An increase in VAT can be useful to fill public deficits and finance our social model” | EUROtoday
PTo fill the social safety gap, dug by the a number of reductions in contributions determined with out counterpart since 2013, the federal government evokes the opportunity of organising a “social VAT”, that’s to say to extend the speed of VAT through the use of the extra revenues thus launched to finance social safety rather than basic social contributions referring to work. The thought is outdated, nevertheless it has by no means been carried out thus far. In the present context, it deserves to be.
It shouldn’t be heard in fact the one tax measure adopted to redress the nation’s public funds. It can be essential to tax the very best earnings and heritage way more, particularly throughout transmissions. But, within the French context, these measures which might solely have an effect on the richest wouldn’t be sufficient to make up for abyssal deficits that the calamitous budgetary administration of Emmanuel Macron has widened for eight years.
If we wish to cut back public deficits whereas repairing schooling and well being, strengthening protection and accelerating ecological transition, we should carry the necessities of the restoration of public accounts on income. And subsequently to establish a number of extra sources, which won’t be the case if we simply tax solely the richest. One level of VAT as well as stories alone within the order of 13 billion euros in public funds.
Since its implementation, in 1954, VAT is the French invention which has exported essentially the most to the XXe century – even when it has introduced nothing to the nation, as a result of it was not patented. However, she has a foul repute, particularly on the left. He is criticized for being unfair: she would contact the poor extra who eat most of their earnings than the wealthy, who save a major half. But this judgment outcomes from a poor understanding of the mechanism at work: VAT doesn’t tax earnings when they’re acquired however when they’re spent.
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https://www.lemonde.fr/idees/article/2025/06/17/une-hausse-de-la-tva-peut-etre-utile-pour-combler-les-deficits-publics-et-financer-notre-modele-social_6613879_3232.html