“The whole question is to know what the very wealthy French have done and will do with the sums which are no longer taxed”

HAS how do we judge the effectiveness of a public policy, and more specifically of a tax reform? The abolition of the solidarity tax on wealth (ISF) still has no demonstrated effect on growth and investment, concluded the committee for the evaluation of capital taxation reforms, in a report published mid-October. “It is not possible to estimate (…) whether the abolition of the ISF has allowed a reorientation of the savings of the taxpayers concerned towards the financing of companies”mentioned in particular the note of this committee of experts, economists and parliamentarians, responsible, under the leadership of France Strategy, for examining each year the emblematic measures of Emmanuel Macron’s first five-year term: the abolition of the ISF, replaced by the real estate wealth tax (IFI) and the implementation of a single flat tax (“flat tax”) since 1^er January 2018. Another conclusion: the reforms increase the payment of dividends, but also their concentration among the wealthiest. And this, even if the tax exile has slowed down for four years.

Enough to feed the criticisms of the oppositions, who continue to demand the repeal of the reforms of the “president of the rich”. “The previous reports of France Strategy should have, at least, allowed to have debates on the subject; an evolution of the measures should have resulted from this”, lamented the Solidaire Finances Publiques union in a press release on November 2. Did not the Head of State himself assure, in April 2019, at the end of the crisis of the “yellow vests”: “This reform (…) will be assessed in 2020 and, (…) if it is not effective, we will fix it” ?

The available data prevent us from having a look after the year 2020, and the report once again refers to more detailed work for 2023. But it is difficult to imagine that, after four annual versions (since 2019), the conclusions of the next report will be radically different.

Simplistic criticism, denounce the proponents of these reforms demanded for a long time by the business community and the supporters of the Head of State’s pro-business policy. The abolition of the ISF and the establishment of the “flat tax”, they argue, were first the symbol of the change of attitude of France vis-à-vis companies and bosses, especially international ones. , long appalled by the procrastination of the Holland quinquennium, with the foil of the tax at 75%.

Poorly calibrated tax

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