Thomas Piketty: "yellow jackets" and fiscal justice - Le Monde

Subscriber's article

The crisis of "yellow jackets" puts France and Europe in a central question: that of fiscal justice. After his election, Emmanuel Macron has spent his time explaining to the country that it is necessary to love the "first of cordée", and that the first priority was to grant tax reductions to the most important assets, starting with the removal of the ; ISF. All this was done with a bang, with a feeling of omnipotence and total good conscience. Even Nicolas Sarkozy had been more cautious in 2007 with his "tax shield", which however had to cancel in 2012. Inevitably, all those who do not consider themselves "rope leaders" feel abandoned and humiliated by the Macrononian discourse, and here's how we end up in the current situation. The ruling power has committed a series of factual, historical and political errors, which are urgent and possible to be corrected today.

In the first place, he tried to justify the removal of ISF with the idea that this tax caused a haemorrhage of activities outside France. The problem is that this statement is totally false from a factual point of view. Since 1990, there has been a spectacular and continuous increase in the number and amounts of assets declared to the ISF. This trend has occurred in all the tranches of the ISF, especially the higher ones, where the number and the amount of financial wealth has increased even more rapidly than the real estate holdings, which have grown much faster than the holdings. estate. GDP and the wage bill. The declines in the stock market in 2001 and 2008 have temporarily calmed this trend, but as soon as past crises have resumed long-term trends.

Article reserved for our subscribers Read also The "yellow jackets" aim to remove the ISF, "original sin" by Macron

Inadequate tax control

In total, ISF revenues have more than quadrupled between 1990 and 2017, from 1 billion to over 4 billion euros, while nominal GDP has doubled. All this despite the numerous concessions, exemptions and ceilings granted over the years to the ISF taxpayers, and despite the fact that the threshold for entry into ISF has been gradually increased by 0.6 million euros in equity in From 1990 to 1.3 million euros from 2012 (after deduction of 30% on the value of the main residence).

Moreover, the tax control of this tax has always been insufficient. Consider, for example, that pre-computed returns have been in place for income tax for ten years, but have never been applied for ISF, while banks could perfectly pass all the necessary information to the authorities tax. In 2012, the detailed declaration was even lowered to 3 million euros (it is sufficient to indicate a total amount of assets, without any possibility of systematic control).

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.