900 more large subject to ISF pay on average currently euro

Some 600,000 French subject to tax on wealth (ISF) solidarity could take to dream. In evoking, Sunday night, in issuing the "Capital" on M6, the idea of removing joint ISF / tax before the presidential election of 2012 shield, the Prime Minister, François Fillon, out this old project to the right of the field of fantasy. It's already considerable if we measure the magnitude of the "wall of China" ideological surrounding this unhappy French exception from taxation on capital. Transform the dream into reality is a company of a formidable difficulty.

This is not the link made by the Government between the ISF suppression and withdrawal of the tax shield which makes the complex operation. On the contrary, this condition precedent gives consistency, the loss of an important advantage - Cap direct overall taxation at 50 of its income - to be offset by a substantial disadvantage - the taxation of its heritage at rates that quickly cease to be ridiculous.

The idea of this twin abolition is much more rational that two "targets" are close enough: it is 1,000 to 2,000 wealthiest French who receive Treasury public of massive refunds in respect of the tax shield and who pay him even more astronomical cheques in respect of the tax of solidarity on fortune. The 1,000 first beneficiaries of the shield are, on average, nearly 340,000 euros each. The 1.900 more large subject to ISF pay, on average, currently euro.

The scale is not perfect, but the tax shield, established in 2006 by Dominique de Villepin then Prime Minister, extended in 2007 by Nicolas Sarkozy became President of the Republic, well became, in practice, and for the most part, a cap on the tax on large estates. Would the 1,000 to 2,000 more large fortunes France absorb alone between 60 and two-thirds of all of the 600 million euros to the title of the tax shield.

In passing, this observation gives the size of the exorbitant taxation levels that support these large estates in the absence of limits to 50 of their income. Removal of the tax shield thus provides a good way of approach to return, finally, on the ISF. If only If only it was possible to find a replacement! But that is where the shoe pinches. Because the wealth tax is more just the symbol it has long been.

Worn by the appreciation of the real property affected to a lesser extent by the financial crisis, moderately began about the possibility of converting it into investment in the capital of an SME, the ISF brings, year poorly, since 2006, between 3.5 billion and 4.5 billion euros of revenues to the State. It is about half of that relevant rights transfer to territorial communities.

Also modest, the financial weight of the ISF is now, with about 8 of public deficit, a brake to his disappearance. "In the financial situation which is ours, I will accept never it removes a recipe for EUR 3 billion", also said Sunday evening François Fillon, calculating deducts the cost of the tax shield. To work around this problem, the MP Pierre Méhaignerie (UMP) and the centrist Senator Jean Arthuis suggest to compensate this loss either by wafer additive to the income tax, raising the top marginal rate, already increased from 40 to 41 in the Bill of finance 2011, to help finance the pension reform.

The first President of the Court of Auditors, Didier Migaud, must submit its own suggestions in the first quarter of 2011, for the sake of fiscal convergence with the Germany. But the runway of an increase of tax on high income to compensate for the double deletion EWB-shield already appears as a false idea, to the objectives pursued. It is attractive to some, because it is to "pay the rich" in any other way. Sauf that are not the same rich and that such a transfer would lead move the problems of over-taxation, not to resolve.

Touch the top marginal rate of income tax, it is indeed hitting much larger than the one concerned by the shield and the highest four slices of the ISF. The Ministry of the Budget there are 420 tax households (about 19.7 million taxable) with more than 17,000 euros in annual net income tax. These 2 of taxpayers pay 40 of what he reported to the State alone.

Their impose a tax increase would further unbalance the tax already unusually concentrated load it by penalizing households, to earn well their lives, are not all subject today to the ISF. Moreover, this kind of massive tax transfer calls to ask if, on balance, it is economically more efficient to overtax ups revenues more mobile, thus harder to outsource more overseas than to large estates.

Finally, tax, the orders of magnitude different as long as they make a little possible transfer: porter IR from 41 to 45 higher marginal rates yield less than EUR 1 billion, barely a third of what is needed. In the State of the public deficit, the ISF outright deletion would find other offsets, in form, for example, of flat tax on income from capital, as did the Netherlands when they have renounced their ISF the following ten years. But as any large tax evening such a revolution would more disaffected than satisfied. Trap, the right to benefit really