"Let's concentrate on just two numbers which are generally accepted. The average household in France hands just over 50 percent of its income to the state, including income tax, social charges and the VAT on what we buy. Billionaires pay 27 percent. How can that be? First, the super-wealthy have many legal ways to lessen their taxes. Secondly, VAT, which is the same for all, is a relatively large part of the tax take in France - 27 percent."
"To be clear, the wealthy DO pay a huge amount of tax. It is just proportionally far less than people with low, middling or even high earnings. If you earn 10 million a year, you pay about 2.7 million in tax and keep 7.3 million. If you earn 40,000 (the current average) you pay 20,000 in tax and keep 20,000. This is manifestly unjust. France is overtaxed but not all the French are taxed equally."
A proposed wealth tax has become the central policy issue as the prime minister assembles his government. The average household pays just over 50% of income in combined taxes and VAT, while billionaires pay about 27% of income in tax. Wealthy individuals use legal mechanisms to lower effective tax rates, and VAT, which accounts for 27% of tax revenues, disproportionately burdens average earners because essentials consume a larger share of their income. Absolute tax paid by the wealthy is large but proportionally smaller, creating perceived injustice and political tension that could destabilize the government.
Read at www.thelocal.fr
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