Bénédicte Peyrol, the young but very talented “Whip” of the group LaREM within the Finance commission of the national Assembly, may be -unwittingly – opened a box of Pandora tax which could lead, in the coming weeks -if not sooner – to exhume the old sea serpent of a merger between the CSG and the income tax. “It is necessary to review the entire tax system, everyone pays taxes from the first euro, has explained the deputy of the 3rd constituency of Allier in an interview Friday in Paris. This is important, because the income tax serves as the link with the State. It is also necessary to review the tranches of the tax that the distribution becomes better.”
And no question-haro on the tech – to tell him that this is not possible. “Anyway, someone will explain that it is always not impossible, we already said often,’ she warned. Me, I say that when the policy decides, and feels that it is for the good of France, it is necessary to put to execution! I am a lawyer and when I was working in a company, when you say something, it was: You cope, you find the legal solution to ensure that it works.”
“we need to thoroughly revamp the entire tax system, everyone pays taxes from the first euro”
The problem, this is the argument advanced by Bénédicte Peyrol is exactly the one that was used, under the previous legislature, by the proponents of a merger between the income tax and the CSG, we must remember that, François Hollande had written in his presidential programme. “The contribution of each will be made more equitable by a large reform for the fusion of IR and the CSG in a sample simplified on income (PSR)”, had promised the ex-head of State -it was his commitment 14 – in his electoral programme, change is now . You know the rest. Jean-Marc Ayrault, fired the prime minister in 2014, had made pressure on the head of the State to implement this campaign promise in the midst of a debate -already – on-the-ras-le-bol tax and the revolt of the red Bonnets. And in the face of the refusal of the president of the Republic, the implementation alternative and the forced march to January 2018 from the collection at the source, which eventually will be postponed for a year by the current executive.
some people, in the great national debate that is open and of which one of the four themes put on the table precisely on taxation and consent to the tax, the opportunity to re-launch the site, very striking to the left and within the majority party -which has accepted, it should also be remembered, a lot of defectors from the PS, and disappointed of the hollandisme of 2012, the fusion between the IR and the CSG. And with solid arguments, new, to support. Thus, the draft law on emergency measures for economic and social, voted on Friday in the morning by mps, and which must be consistent, in the night to come by the senators, introduced a form of the CSG progressive, which would greatly facilitate the implementation of such a project.
“The contribution of each will be made more equitable by a large reform for the fusion of IR and the CSG in a sample simplified on income (PSR)”
The cancellation of the increase of the CSG for the retired winner, to simplify, from 1200 to 2000 euros pension a month, has in fact created a 4th rate of the CSG for retirees, in addition to the ones those benefiting from the reduced rate, the full rate or are completely exempted. And the same 5 rate, one of the assets is 0.9 point higher than that of the retired, which is exactly the same number of slices as the IR today… moreover, the passage on the 1st January 2019 to the removal at the source would also render more easy the operation, allowing to stick to the promise of François Hollande. For memory, the CSG -paid by all income, including financial and assistance – reports today of some 100 billion euros per year to the social security accounts and the other when the tax on the income, that pay a little over 40% of tax households, fills the State’s coffers to the tune of $ 75 billion per year.
Still, the project, to see the day, will address approximately 100 billion euros and a little more from tax shelters the budget 2019, finally adopted on Thursday by Parliament. This will be far from a thin case, both the legislatures, the previous, in spite of the reports below the elbow, making the ratio cost/effectiveness accurate -even cost/jobs created – of the various tax expenditures associated with them, have always preferred to opt for the shots of planes as for the removal, permanent, and radical, and niches. And this on the ground that, as reminded by the famous saying, “in every niche, there are dogs that bark” and, therefore, limit the reform intentions of the executive and parliamentarians. Yet, as we know, there is something to eat and drink in the niches, starting with the reduced VAT in the restoration of which has been, repeatedly, shown that it had no, or little, created jobs, and even less to lower additions.
“This is really just the beginning of reflection (…). Today, the French pay a lot more in indirect taxes than on direct taxes, according to me, what annihilates the link with the State.”
Emmanuel Macron -although the main architect of the economic program of president Holland in 2012, before becoming its deputy secretary general in charge of economic issues at the Elysée palace and the minister of Economy of the government Valls II, however, has never expressed a willingness to merge IR and CSG. It is not so. In any case yet, the crisis of the “yellow vests” that have been drummed into a number of maps and certainty, particularly in relation to the taxes with the resurgence of the “ras-le-bol tax” and the introduction of this theme in the great national debate that will take place until the 1st of march. “This is really just the beginning of reflection, explains in Figaro Bénédicte Peyrol, to de-mine the conclusions that could be drawn from his comments general in The new yorker . My wish is to re-examine the link with the tax, and the balances in the presence. Today, the French pay a lot more in indirect taxes than on direct taxes, according to me, what annihilates the link with the State.” Of which act.
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