The tax that replaces the TFR has "undesirable effects", according to a Senate report

The creation of the Property Tax (Ifi) to replace the Solidarity Tax on Wealth (ISF) has led to "undesirable effects" without showing a positive impact at this stage on the economy. after a Senate report released Wednesday, October 9. Measures are proposed to improve its efficiency.

Has the removal of the ISF and its replacement by IFI had positive effects? Not really, according to a Senate report released on Wednesday. Established instead of the Solidarity Tax on Wealth in 2018, according to the government, the property tax must stimulate activity by encouraging the wealthiest taxpayers to invest in the economy, while Taxation of capital in France is one of the highest in Europe. He also had to correct certain biases. Like fiscal exile or some inequity, because of measures allowing the greatest fortunes to reduce the amount of their tax.

But according to this study led by the Finance Committee of the Senate, Ifi has failed to fill all these gaps. Although it "seems that it has had a positive impact on the number of departures" abroad taxpayers, noted Albéric de Montgolfier, general rapporteur LR of the Finance Committee, at a press conference. "It has not allowed to remedy the inequity of the ISF," allowing the most important financial assets not to be subject to the Ifi, and noted Vincent Eblé, president (PS) of the commission of the Finance.

Eighteen percent of the highest assets (those over € 10 million) are exempt from IFI, while conversely, 20% of IFI taxpayers have an income of less than 60,000. euros, details the report. "We still have the syndrome of the small retired owner on the island of Ré," regretted Vincent Eblé. Another defect is the decline in donations made by households affected by the reform, because of an overall reduction in the tax paid, despite the existence of an exemption called "Ifi-donations" .

Index inflation to the threshold of entry into the tax

To correct these biases, the report recommends two "short-term" measures, for example in the framework of the draft Budget 2020, which began its consideration in Parliament: indexing the entry threshold in the Ifi for inflation to counter the rise in real estate prices and strengthen the "Ifi-donations" exemption.

Published a week after a report on the same subject of France Strategies, a body dependent on Matignon, the Senate report also believes that it is too early to assess the effects of tax reform on investment in favor of the economy. French. Senators also discussed the creation in 2018 of the single flat tax (PFU or "flat tax" ) on capital income. If they support this provision, they want measures to better direct savings to corporate finance.

They also campaign for an "anti-abuse" device to avoid the transfer of dividend pay (not taxed through the Ifi and whose taxation is limited by the PFU) rather than wages.

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