Fisc was the modest name wicker basket, which became synonymous with the public treasury, itself a leaky basket. The taxman is supposed to fill the basket, which never happens. The more tax comes in, the more the State rejoices, anticipates, spends, goes into debt. The ability to raise taxes is a guarantee for lenders, hence France’s good rating for a long time. Hence, above all, its impressive debt.
The tax administration has a genius for taxes, it has invented between 400 and 1000, no one knows exactly, because it does not know how to count. This is evidenced by the budgetary error of the Bercy mathematicians of only 1.5% of GDP, some 60 billion.
Peter the Great invented a tax on beards, the taxman created taxes on the possibility of having a beard. This is called “latent” capital gains. You didn’t earn the money, but you could, smart guy! Also France has, excluding North Korea and Cuba, the world record for levies, and, as the two are linked, a staggering debt. Today, stupidly, the praetors are worried.
For the first time in forever, France is borrowing at rates higher than those of Greece, Italy, Portugal and Spain. These poorly rated people have made efforts, starting with the poor.
The solution to debt? Still the tax. As long as it’s popular. Only the rich will pay. Really ?
Who pays the rich’s tax? Everyone. The rich and big businesses pay a little less.
Who pays the rich’s tax? Everyone. With a small downside: the rich and large companies pay a little less than the others: they benefit from the crushing of salaries and competition.
The beard tax is not paid by beards. The one on the windows was not paid for by the windows, the one on the rich is not paid for by the rich. The tax is levied on all wealth creation. This is why the tax authorities, in their wisdom, intervene at all stages of value creation.
When a company pays tax, it is not the company that pays; but the suppliers, subcontractors, customers, shareholders, employees, those it does not hire, the unemployed. This is the pressure on wages. It’s the entire chain that pays.
Every tax slides, driven by a force of gravity which causes it to be paid by the central mass, the middle class. The tax with the highest yield in France is VAT (210 billion), almost half of tax revenue. Tax on the rich? As for social contributions, which kill work, they account for a third of compulsory contributions (around 410 billion in 2023), 14.7% of GDP. Everyone pays them, they block salaries, the minimum wage is gaining ground. These are the real taxes paid by all. The rest is nonsense.
Make the rich pay? Already done. “With a rate of 64%, France is second in the OECD for taxing the salaries of people earning 20 times the average salary, behind Belgium (67%). The German rate is 47% » (Fipeco). The marginal rate exceeds 75%. The truly rich look elsewhere, compare what they have left, net. Like the poor.
The art of taxes is to make people believe that it is the other person who pays.
When are we rich? Those who earn more than 4,417 euros net per month are part of the richest 5%. Seen from elsewhere, they are poor (United States, Switzerland, Germany, Netherlands, Ireland, etc.)
The art of taxes is to make people believe that it is the other person who pays. While the government claims to concentrate taxes on the rich, the increase in pensions is postponed (4 billion), the tax on electricity is increased, that on plane tickets is tripled.
The tax office is the face of the state. Where the treasury is, there is the government : where is the taxman, there is the empire. The highest fiscal dignitary of the empire was called “Count of Sacred Largesse”. Sacred generosity, which goes beyond the revenue. Tax and treasury, it’s all one. Or rather taxes and debt. Public spending justifies the tax. It is the French addiction to public spending which generates the tax. It represents 56% in France. Another record. The third with that of debt and levies. Who does not see that they are linked?
Subsidy exchange for some against tax cuts for all. Simplification as a bonus.
Reduce expenses, but how? Easy. Aid to businesses (more than 3,000) represents, according to the Court of Auditors, between 92 billion and 260 billion euros. 10% of GDP. Rather than increase taxes, remove aid and counters. Subsidy exchange for some against tax cuts for all. Simplification as a bonus.
Expenditure exceeds revenue, the State resorts to borrowing. Yesterday, the Farmers General advanced the sums to the Prince, on condition that they collect the tax. The Pharaohs embalmed with gold did the same. Today, the State issues Treasury Bonds. Those who want to fight against international finance should propose balanced state budgets. Which are these revolutionary countries whose budgets are in balance?
Ireland, a poor little country, has some of the lowest tax rates in Europe. It accumulates budget surpluses. This year, 8.6 billion. During the euro crisis, the European Union and the IMF granted it a loan of €67.5 billion and asked to increase taxes. Worthy refusal: Ireland did not want to sacrifice the source of wealth. Switzerland is reducing its spending. Would it be in excessive deficit? No, she has not wanted a deficit for thirty years. At that time, the Swiss had the same standard of living as the French, they now have double that. Ireland, Switzerland, Norway, Cyprus, Denmark, Portugal, and a few others have budget surpluses. And no more poor people?
Lowering tax rates does not decrease tax revenue.
Do these countries have less tax revenue, hospitals in tatters, abandoned schools, a justice system in ruins? Less housing? Why build one? Beyond an IFI greater than 0.7%, the profitability of a real estate investment is negative. There are fewer medium-sized companies in France than in Italy because the interest in investing in a company is low, it is better to invest your money in treasury bonds. Hence the famous “deindustrialization” of France.
Lowering tax rates does not mean lowering tax revenue. The higher the wealth creation, the higher the revenue.
The same goes for salaries. They track the amount of overall wealth. American dockworkers, on strike, obtained an increase of… 62%! They “only” earned $150,000, on average. An American dockworker would be very rich in France, overtaxed.
Since 2017, the corporate tax rate has increased from 33.3% to 25%, revenues have increased from €56 billion in 2016 to €82 billion in 2023: +46%! Tax revenue depends on wealth, not rates.
No country has paid off its debts by raising taxes.
If France wants to reduce its debt, it is therefore necessary… to reduce taxes. Whether it’s about the rich, the poor, the windows, the beards, the barbers, businesses big and small, it doesn’t matter, in the end everyone pays. No country has paid off its debts by raising taxes. No country has increased its productivity through the exploits of the tax authorities.
This is the key: to repay the debt, facilitate growth. Debt is a problem when its cost exceeds the growth rate. France’s growth is weak, that is the danger. This is why interest rates are increasing.
France needs “overgrowth”. Good news: the world is in the midst of a revolution, with unprecedented pockets of growth. As long as you open yourself up to it, invest yourself in it. While the tax authorities are looking for a few billion, Open AI has raised funds of 6.5 billion, which brings its valuation to 160 billion. It was worth half that six months ago.
New taxes will not pay the debt. In the absence of wealth creation, in the absence of growth, in the absence of thinking differently about the needs, functions, levies and scope of the State, the poor will pay.
Laurent Dominati
has. Ambassador of France
has. Member of Parliament for Paris
President of the publishing company of the Lesfrancais.press and France Pay sites.
I like this:
I like loading…
Leave a comment
Related News :