“We share the observation that a floor tax on large fortunes is the most effective in the face of tax inequality” | EUROtoday

LE Senate is known as upon to determine, Thursday, June 12, on the proposal to create a flooring tax on giant fortunes, adopted in February by the National Assembly. The three of us have – like all residents – completely different opinions on the character of the best tax system and the best degree of progressive tax. But we share the commentary that the richest don’t contribute immediately to what’s requested from different social classes, and that the mechanism voted within the Assembly is the best in remedying this example.

The excessive -quality work of the Institute of Public Policy, based mostly on new administrative knowledge, has established that the most important fortunes pay in all little or no revenue taxes, as a result of they’ll bypass it – legally – thanks to varied optimization strategies, comparable to using holding firms.

Consequently, whereas all French folks pay round 50 % of their revenue in taxes and social safety contributions, all levies included, this determine drops to 27 % for billionaires, virtually half as a lot. This is a violation of the constitutional precept of equality earlier than tax.

The handiest means, to deal with this downside, consists in making a taxation fee, as a result of this mechanism tackles all types of optimization, no matter nature. It is that this logic which for instance led France to undertake in 2024, with different international locations, a minimal tax fee for big multinational firms. For the ground fee mechanism to work nicely, within the case of excessive heritage, it’s merely crucial that it’s expressed as a share not of revenue, too simply manipulable, however of the fortune itself.

This is all of the curiosity of the invoice adopted by the National Assembly, which establishes a 2 % flooring tax on the heritage of tax households whose fortune exceeds 100 million euros – these for whom the efficient tax fee turns into “regressive” (it drops when financial revenue will increase).

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