[Paris 1 Reuters]-An external survey that verified the effects of tax cuts for wealthy people introduced by French President Macron in 2017 has yet to confirm that tax cuts have led to economic growth and employment promotion I understood that.
President Macron has reduced the target of wealth tax to real estate, not all assets, in order to attract investment, promote growth and employment. Also, regarding the tax rate on interest / dividend income and capital gains, the previous system, which differs depending on the taxpayer's income tax rate, was revised to a uniform 30%. This is below the income tax rate of many wealthy people.
The survey, commissioned by the government, pointed out that in 2021 enough data will be available to assess whether tax reform is in effect.
According to a survey, the wealthy households that left France in 2017, when tax reform was implemented, dropped to 376, the level since 2004. In 2014, when the former president of Holland raised taxes for the wealthy, there were more than 900 households.
Also, as part of the survey, we asked 90 asset managers about customer investments, and found that investment in real estate decreased and that more dividend income was moved to investment trusts. This trend is likely to lead to productive investment by companies.
According to the survey, the wealthy people benefit from tax reform, but the impact on income imbalances is limited, given the relatively small scale of the overall tax system.
Furthermore, he pointed out that the impact on the finances of tax revenue declines is less than the initial estimate.