The Resource A review of capital taxation in France

A review of capital taxation in France

Label
A review of capital taxation in France
Title
A review of capital taxation in France
Creator
Subject
Language
eng
Summary
The government's planned tax reforms are an important opportunity to make capital taxation in France more efficient and growth friendly. The current system is characterized by a range of distortions and inefficiencies. The corporate income tax (CIT) regime features a high statutory rate but low revenue productivity, as well as a bias toward debt financing, ineffective size-dependent regimes, and inefficient tax incentives. Profit-insensitive taxes are comparatively high. Anti-avoidance rules are strong, but risks to outbound profit shifting remain. Tax uncertainty is another concern. At the individual level, the system of taxing wealth and capital income is complex, with distortions from differential taxation across savings instruments. To address some of these issues and make the tax system more supportive of growth and job creation, the government plans to reduce the CIT rate, further cut the labour tax wedge, unify taxes on capital income, and narrow the wealth tax. The author's analysis suggests that complementing these reforms with measures to remove inefficient tax incentives, further reduce the debt bias, address disincentives to company growth, and streamline the taxation of long-term savings could enhance their impact on competitiveness, revenues, and growth
Citation source
In: Tax notes international. - Falls Church. - Vol. 88 (2017), no. 8 ; p. 799-815
http://library.link/vocab/creatorName
  • Hebous, S
  • Mansour, M
  • Perry, V.J
  • Waerzeggers, C.J
Geographic coverage
  • European Union
  • Europe
Language note
English
http://library.link/vocab/subjectName
  • capital tax
  • corporate income tax
  • tax rate
  • tax policy
  • tax incentive
  • foreign investment
  • profit shifting
  • tax wedge
  • social security
  • fiscal neutrality
Label
A review of capital taxation in France
Instantiates
Publication
Label
A review of capital taxation in France
Publication

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