of the objectives of economic efficiency and equity

The Council of the levies mandatory (CPO, attached to the Court of Auditors) presents today to the Finance Committee of the National Assembly the report on the household wealth commissioned in May 2008 by its President, Didier Migaud, who wanted to "assess the adequacy of the existing tax system and initiate legislative work pursuing (...)" "of the objectives of economic efficiency and equity". Two caveats, however, are to be made to the report that "Les echos" got: it is too early to measure the impact of recent legislation (decrease of the rights of succession, expansion of the tax shield), while the financial crisis and the beginning of the decline in prices of real estate already upset the value of heritage.

The value of heritage

has grown faster than income

"The period covered in this report (1997-2007) is a phase of exceptional increase in the value of the heritage of the household", indicates the POC, which notes that "the progression of net heritage was overall stronger in France than in other OECD countries." In current euros, the value of the heritage of households grew by 147, when heritage revenues grew "only" of 31 ( 110 to 8 on interest and dividends). The real estate boom explains the sharp rise in the value of heritage. The value of the CAC 40 rose by 87.

The taxation of heritage in constant increase

The POC estimated at EUR 65 billion revenue from taxation of the heritage of the households in 2007, 3.4 of GDP. Samples in constant progression, and among the highest in Europe. "Heritage levies were increased faster between 1997 and 2007 revenues of heritage, but less quickly than the value of this heritage", summarizes the report.

Lai and transfer rights have experienced an increase comparable to that of heritage ( 147 over ten years). Property taxes, on the other hand, grew much more rapidly, at the initiative of local communities. With the taxation of savings, they are now two thirds of the levies on the heritage, the ISF is occupying more than a marginal role.

The Council suggests

accommodation

tax shield

The tax cuts implemented since 2006, including the Act Tepa of August 2007, contributed to the development of tax optimization strategies. "They could sometimes be a to bargain more as a measure of incitement", considers the Council. The implementation of the tax shield encourages some households to "reorganize their heritage and their incomes to minimize the latter and thereby reduce their ceiling of direct taxation. The Council suggests the tax administration to conduct an investigation on these practices. In some situations, he adds, the tax shield allows taxpayers to be relieved, not only ISF, but also of other direct taxes such as property taxes and housing. "If new heritage levies were to be established, the question of the level of the tax shield deserves to be asked", suggest - it. Limits of taxes (tax on income, EWB, local taxes, social security payments) now stands at 50, 60 by 2007 (excluding social security payments). Tax shield limit, in addition, the effectiveness of the ISF exemption for investment in SMEs is justified, by some risk taking. Formatting consistency of the shield with the device "deserves to be studied.

Low equity

and uncertain economic efficiency

The high rising real estate prices and therefore transfer fee rights has "disadvantaged households", notes the report, that "foreign examples which provide a relief for first homebuyers are thinking trail." Land Tax Act, the non-révision of the indebted cadastral "creates unfair situations, both between" bases between territories As Lai, "because many exemptions which is the object, he plays a limited role in matters of redistribution of wealth". Concerning the economic efficiency of sampling, "force is that evaluations and impact assessments post-clearance are very limited," said the CPO.