Tax: note was saltier in 2014 to half of French – Le Figaro

INSEE figure 0.5% lower average standard of living of households due to the new tax and social measures occurred in 2014. It only slightly reduces inequality.

The Insee confirmed in a study published on Wednesday morning that the French feel for many months already: higher levies beating down their standard of living. The National Institute of Statistics figure actually 0.5% lower average standard of living of households due to new fiscal and social measures that occurred in 2014. The drop was even 0.9% for the 10% of households richer. He also stressed that “the reforms of benefits and withdrawals occurred in 2014 penalize 50% of the wealthiest households and save 10% more modest.” In other words, half of the French are losers!

The reason? Essentially the “increase in income tax, targeted to better-off” and higher pension contribution rates, noted INSEE. If no new measures had been implemented, the samples were lower (-1.9%) and slightly higher social benefits (+ 0.1%).

The Insee into detail. The measure that has had the most impact on disposable income is rising salary pension contribution rate (2.4 billion euros), which concerns all active contributors. It generates an average loss “140 euros for almost 18 million households while being neutral on inequality.” The side of the income tax, a further reduction of the ceiling of the family quotient comes underestimate the effect of the inclusion of dependent children in the tax calculation. For gasoline targeted on families paying a higher tax, “is the measure that contributes most strongly to the reduction of inequalities in 2014 by reducing the disposable income of these households of 1.15 billion euros.”

Also, remember to Insee, “the overall tax benefit cap pulled different tax credits and reductions were significantly lowered in 2014″. This measure represents an average additional tax of more than 4,000 euros to 30,000 households, almost all among the wealthiest 10%.

The end of the exemption to IR participation of employer to finance a supplementary health insurance and the pension increase of approximately 10% benefiting 4 million pensioner households who raised at least three children “lower average annual disposable income of the households concerned respectively 390 euros and 130 euros, “says the Institute.

The exceptional tax reduction for low incomes helped limit the effect of this action for the least well-off taxpayers.

The study shows that in total, all of the devices reduced “slightly” inequalities in living standards between the richest households and more modest: the average living standards of 10% of the richest French is 6.32 times that of the smallest 10%. Without these devices, the ratio would have been 6.40.