3 décembre 2021

Abolishing income tax in France is the recipe for reviving and preserving purchasing power

Our tax-based economic system is called upon to improve, to improve always, and to be erased at the level of the income tax in order to fulfill its public service mission in a different way.

Our tax-based economic system is called upon to improve, to improve always, and to be erased at the level of the income tax in order to fulfill its public service mission in a different way.

Removing a tax is not removing other taxes. Our economic system is sick. The elimination of the income tax means 20% of state revenue to boost employment through consumption. It would then be wise to question whether the 80 billion dedicated to the industry recovery plan will be useful for reindustrialisation and to clarify the conditions for granting universal income for young people.

The French are faced with a gradual loss of their purchasing power.

I ask the following question: why take it through income tax and then redistribute the money arbitrarily in the form of aid? Keynes’ theory argues that letting money work in the real economy for consumption encourages the real injection of that money back into the real economy.

Illness is often the strong signal that suggests that we radically change our way of seeing and thinking in order to get better. The patient is forced to take care of the man he is and listen to his wisdom in order to be fulfilled.
The current context points to a system weakened by an income tax as would be a sick human organism drained of its energy. He suffered from a health crisis, economic recovery is not forthcoming, purchasing power is in decline. Its vital diagnosis is engaged and I propose that this tax be abolished.

Life is perpetual change. However, we are empowered to be the decision makers of our future and it is up to us to act with justice, justice and respect.

Our society is bogged down by the disease of digitalized and invasive bureaucracy. Rivalries are stoked, schizophrenic behaviors of all control lead to division, isolation, distress. Would our system lose its memory to the point of forgetting our middle class which works and creates, to the point of forgetting that it is vital and urgent to enable economic recovery.

We need determined speeches that shed light on a new and peaceful path.

Lying courtiers from all walks of life are being exposed, and promises aimed only at securing one more voice ring false. Opportunists will soon be a thing of the past. We no longer honor a system, an administration out of careerism or love of power.

The time has come to put oneself at the service of the children, women and men of France with humility and respect, to show a path accepted and understood by all.

My proposal is the elimination of income tax.

Since there is disease, since it shows us where it hurts, let us take a fresh look at what is wrong and ask ourselves what transformations need to be implemented. We must realize that income tax is no longer necessary. He belongs to a culture of income taxation that is an outdated dogma, a belief. Indeed, it corresponds neither to real economic flows nor to the State’s revenue needs.

The announced crisis is upon us.

The sincere and serious budget presented by the government is aware of the increase in energy raw materials (more than 1000 euros increase per household for 2022 including heating and fuel expenses), the crisis in automotive electronic components and the very probable rise in interest rates linked to inflation. (2.7% in September). The budget is used to support the French in their daily lives, and must take into account a French deficit of around 114% of GDP, which is dangerously high.

It appears that this budget is a budget with holes because certain expenses have not been correctly evaluated and there is a certain vagueness on the type of planned revenue.

Our eyes must be on the future. At present and until 2023, French debt is bought by the European Central Bank and this means that our debts and expenses cost nothing or very little. This extension allows officials to announce the 30 billion euro “2030 plan for industry”, as well as the new “youth RSA” estimated at 50 billion euro.

There is no guarantee of revival of the real economy linked to what I call “budget holes”.

Economically, we find ourselves in an open bar world.

This is not Keynesianism which would consist in choosing to inject money by the state into large national investments with the intention of supporting the economy. It seems that the French have been presented with a real sincere political budget but a bogus economic budget that looks like the end of the Stability Pact.

Personally, I am worried about the slippage of this budget as well as the high level of French debt (2,739.2 billion euros). Other economists are also warning. The high council of public finances qualifies the budget in these terms: “The budget is incomplete. Indeed, it does not include the impact of measures that have already been announced by the government. “. More explicitly, the two budget holes total more than 80 billion euros.

In France, economic thinking is disrupted by redistribution. A relevant and serene choice would be to limit spending and eliminate revenue linked to compulsory levies for the purpose of efficiency while respecting the spirit of Keynes ’theory.

Income tax is the most symbolic recipe. It amounts to 75.7 billion in 2020 – this tax is paid by 17.1 million taxpayers or 43% of French tax households. This revenue is therefore lower than the two budget holes. By way of comparison, VAT represents 123 billion of budgetary revenue in France.

These figures, the position of the top public finance council, the idea of ​​a lasting economic recovery supported by the state lead me to think that it would be wise to allow French citizens to become direct economic players in our economy. They would directly inject this gain back into the real economy with a social and responsible vision.

Keynes argues that the market does not self-regulate, does not ensure full employment, and that state intervention is necessary to revive an economy. So it is likely that if we allow citizens to make natural use of the energy of money, we will achieve better results than if we subject those same citizens to imperfect state control during a phase of recession.

The state, thinking of doing social Keynesianism, opts for high state spending and therefore too high an income tax for the situation. It is in fact anti-Keynesianism which will prove to be counterproductive against a backdrop of debt at 114% of GDP.

Pushing growth is about leaving their money to those who earn it. The abolition of the tax is a virtuous act and in no way anti-social. We have never experienced a crisis like this and it is characterized by a crisis of supply and demand. Work will become a rare commodity, businesses will be impacted.

Poverty is accelerating and we will have to finance the solidarity unit through a minimum living income. A Covid-19 tax should also be levied on movements and financial markets … The economy could then resume.

Without the elimination of the income tax, we will persist in remaining in a system dependent on growth by debt while maintaining a strong tax pressure which is an accelerator of downgrading which risks leading to a real systemic risk.

At the moment, many French people think that we are living as before. Yet in the background, liquidity has been added everywhere, the debt has therefore increased and the real question is no longer to quantify it but to ask how to deal with it?

The projections for growth say that in 2022 we will still be recovering. 5% growth is expected. This corresponds to the recovery from the collapse that we suffered in 2020. In 2023 the expected figure is 1.9% and still decreasing in 2024. It should be noted that below the 3% growth bar, unemployment is falling. creates and is a factor of social tension. It is therefore obvious that we are tending towards weak growth and therefore towards a new phase of indebtedness in France.

It is interesting to note that the French are subject to the highest public taxes in the world (2nd world position in 2021) and that we are among the highest public expenditure in the world. If we soon find ourselves with weak growth, increasingly high debt, it could be fatal with soaring central bank rates driven by inflation.

By eliminating income tax, by maintaining other taxes and duties in France, we are leaving (instead of injecting) 80 billion euros into the real French economy. We therefore support consumption and limit spending. The immediate enrichment of all French people allows economic recovery over a long period (and not short-term spending) and reduces the rise in French debt by protecting us from a rise in central bank rates.

By reducing the risks of social tensions, by protecting the French from a rise in the cost of living, we are opting for an essential economic recovery through consumption, savings and investment by the French in their economy. It is a question of turning to an economy of consistency, respect, benevolence and competence. The emerging society will relearn the value of things, the quality of products, the added value of the real economy which is no longer dispersed in global fundamental calculations. This is to allow good citizen sense.

  • French State revenue EUR 313.4 billion including VAT 126 billion EUR, income tax EUR 75.7 billion, corporate tax EUR 48.2 billion, various tax contributions EUR 43.1 billion, non-tax revenue EUR 14.4 billion , competition fund receipts 6.
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