According to a study by l’Institut des politiques publiques (IPP), the wealthiest 0.1% of French households are proportionally less taxed than the rest of the population.
The study, based on 2016 data, highlights that while personal taxes remain progressive based on income, there is a significant decrease in the overall tax rate once the threshold of the wealthiest 0.1% is crossed.
These 37,800 affluent households, earning over €627,000 annually, have an overall tax rate of 46%.
However, this rate decreases as the incomes of the ultra-rich increase, reaching 26% for the 75 wealthiest households.
This is due to the composition of their incomes, primarily derived from undistributed corporate profits subject to corporate tax (IS) rather than personal income tax (IR).
The higher tax rates based on personal income and wealth, which reach around 59%, are replaced by the much lower IS rate of 33.33% in 2016 (and 25% currently).
However, this is not unique to France and is observed in other countries such as Sweden, Netherlands and New Zealand.
Source
- https://www.bfmtv.com/economie/patrimoine/impots-fiscalite/les-francais-les-plus-riches-paient-proportionnellement-moins-d-impots-que-les-autres_AD-202306060449.html
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