French Taxation

The French taxation separates into two part: the “ Taxes and social security deduction” and the other taking away, which although being obligatory they as, are not defined like belonging to the taxes and social security deduction because versed at other organizations as public administrations.

The taxes and social security deduction include/understand in great majority the Impôt S (which include the majority of the Taxe S), but also the parafiscal taxes, the Redevance S for rendered services, the Customs duties and some National insurance contributions.

Taking on the citizens and the companies, the French tax system brings receipts to the French Public administrations, which accounted for 50.8% of the Gross domestic product in 2006.

See also: List of the taxes and French taxes, tax System French

Definitions and typology

See also: Tax

Among the public revenue, all the obligatory contributions , are not taxes . The lawyer Gaston Jèze defined in first half of the 20th century the tax in the following way: the tax is a necessary pecuniary service of the private individuals by way of authority, on a purely final basis and without counterpart, for the cover of the public offices.

It is necessary to distinguish the taxes from the other receipts such as:

  • income drawn from the possessions of the State (or of the sovereign): old the royal field, become the " private field of État" , or participations of the state in companies.
  • the product of the fines, because they are not intended to cover the public offices.
  • royalties, because they are perceived only in exchange of an optional service (for example: the Broadcasting royalties, expenses university).

Some contributions are with the margin of this kind of definition and can be, according to the points of view, considered or not as taxes: for example, the generalized Social contribution (CSG, second tax in value).

In France, as in all the democratic countries, the amount of the tax and the methods of perception are voted by the Parlement, which ensures also the control of its use. The revenue duty French thus takes part of a basically legal nature.

History

Historically, the majority of the taxes were established in kind, that is to say in shares of harvest (Dîme, Champart,…), that is to say in work (Corvée S, military service). Gradually, each one of these taxes was replaced by a contribution in cash, because more practical as well for the recipient as for the taxpayer.

The size, at the 14th century one of the oldest taxes is taken by French monarchy. It replaced the Fouage.

Under the Old Mode, the collection of the taxes was leased, i.e. the State entrusted this task to specialized contractors, farmer general, who advanced the amount of the tax to him to be perceived to refund itself then on the taxable ones. This system was convenient for the State (the receipt was known in advance and it discharged from the unpopularity of the tax collectors) and for the farmers general (the business was very profitable). The people, saw there him especially a source of injustice and excess in the collection, but this criticism must be relativized: as regards taxes, the recrimination of the taxpayer was always the rule.

By starting its Regency, Philippe of Orleans, to leaving the long reign of Louis XIV whose many wars often put at evil the Public finances, conscious of the problem, addresses, the October 4th 1715, a “ Lettre in Mrs the intendants police chiefs separated in the provinces ”, in which he declares that its major concern is the excessive weight of the various taxes and announces its intention to establish a system of imposition righter and more egalitarian.

The French revolution deserves its tax matter name well. The general farm is abolished, the farmers general guillotines, the taxes standardized on the territory, true tax authorities installation. The Parliament, in the name of the people, takes the control of the taxes (the sovereign loses this important prerogative), destroyed all the statutes and special fiscal advantages (of the nobility and the clergy, but also of the provinces, cities, corporations, etc), dream of a contributive equality proportional (which never will be truly installation, whereas the socialist thinkers prefer a progressive contribution ) and formalizes this takeover in the Déclaration of the human rights and the citizen of 1789, article 13:

“For the maintenance of the police force and the expenditure of administration, a common contribution is essential. It must be also distributed between all the citizens, because of their faculties. ”

See the Leitartikel: Revenue duty in France

Throughout the 19th century, the taxes evolve/move little. They are taxes on the inheritance (real estate taxes), the activity (the Patente, ancestor of the Professional tax), and much of indirect taxes and " droits" during the exchanges of goods (succession, real purchase, recording of transferable securities, etc). With the turning of the 20th century, one starts to discuss the installation of a Income tax, but it is only the Great War which gives the opportunity of it, in 1914 and 1917. In 1943, one abolishes finally the interior customs (the Octroi).

Lastly, last notable innovation on the technical plan, VAT is made gradually as from 1954, in France initially, then on its example more largely in the world. Adopted everywhere in Europe, she will be unanimously regarded as the best base to feed the cases of the European Union.

The French tax system is currently found discussed: with the development of the European Union and the universalization, tax competition strongly increased, and it becomes necessary to take into account the news possibility of avoidance (practical legal of tax Expatriation, contrary to the Tax evasion), without to defer an excessive load on the taxability which cannot be delocalized. Tax competition tends to defer the tax on consumption and the imports (in the form of a rise in the VAT, such as recently practiced by Germany), and to decrease that which strikes the transferable securities or work (délocalisables).

Level of the taxation in France

See also: Taxes and social security deduction, List of the taxes and French taxes

Among the countries of OECD, France has a high level of imposition.

The levels of the National insurance contributions are particularly high (16,3% of the receipts of the Public administrations against 9,4% on average for OECD).

The principal taxes are (rising of billion euros, in 2007):

Broadcasting royalties is not a tax, but, as its name indicates it, a royalty -->

Use

Concerning the Redistribution of the incomes, in France in 2004:

  • before tax, the relationship between the most important incomes and weakest is from 7 to 1
  • after tax, this report/ratio is reduced from 4 to 1.

The progressive increase in taxation is thus important.

France spends 53% of the GDP in public expenditure including 30% for of the transfers and 23% for the supply of goods and public services .

See too

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