Contrary to what Macron says, removing the ISF has not been good for the economy

Give me back the ISF! “While the activists who raised this cry during their meeting in Strasbourg military manu were evacuated Yesterday, Tuesday, April 12, Emmanuel Macron once again defended one of the most symbolic measures of his five-year term: the passage of the wealth tax to its extra-light version, the real estate wealth tax, supposedly to allow the rich to stay (or come back) and invest in the economy. Bad luck for the presidential candidate: all the economic indicators available since the reform show that it has not had these effects.

I am challenged by far-left activists. If they want to listen to me, I will answer them.launched the head of state after being arrested. First, the ISF is not in my pocket, but the tax reform we carried out at the beginning of the five-year period has allowed us to recover the investment. Recreate wealth, and we have done it, through the reforms made, it allowed to create a million jobs, and create industries, businesses in the region. “The one to whom the label of “president of the very rich” has been stuck from the first to the last day of his term hammers out an already worn argument: no rich, no wealth, no wealth, no second round. An idea summarized in this conclusion: I am very sensitive to this social voice and to the demand that exists, but I tell you very strongly: there can be no social policy if there is no productive policy. We cannot distribute the wealth that we do not produce. »

A “zero impact” investment

But here it is, it would also seem that the distribution of wealth, even produced, is not the first concern of the richest. In October 2021, France Strategy’s Committee for the Evaluation of Capital Tax Reforms drew three conclusions from its experience that defeat the government’s arguments. First: ” We measure a precisely estimated nil impact of the reform on business investment. No, the companies were not crushed by the French fiscal yoke.

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In July 2019, the Finance Committee of the National Assembly noted in its annual report that the rich had not played the game when it came to investment. While, for 2017, the State had granted 550 million in ISF of deductions for investments in SMEs, this amount rose to 160 million euros with the IFI the following year. That’s a 70.9% drop in investment in SMEs thanks to money raised through IFIs. Where did this money go? According to a 2019 Ipsos survey, it was mainly used to consume and save: Of the 300 IFI taxpayers surveyed, who could choose multiple answers, thus a total of over 100%, 42% stated that they had spent the money saved thanks to the consumer reform, 41% to savings, 12% to real estate, 23% to donations to relatives and 29% to invest in a company.

Call over the air? empty argument

In Strasbourg, Emmanuel Macron spoke of ” return investment “, retracting part of his speech compared to July 14, 2020, during which he further explained:” [La suppression de l’ISF] bring people back, who will reinvest. ” The thing is ” people » are a little late. Still according to France Strategy, the balance of returns and outflows of households likely to contribute to the IFI is certainly positive, but ridiculously low: 77 in 2018, 60 in 2019, when around 130,000 taxpayers were affected by the IFI. That’s a variance of 0.05%. Sacred call for the air…

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What about the jobs that the tax reform would have created according to Emmanuel Macron? Here too, the report of the Capital Tax Reform Evaluation Committee very clearly contradicts the President’s statement. ” Regarding the impact of the reform on the behavior of companies in terms of employment and payroll, we observe a negative trend before the reform, which does not seem to change as of 2018 “, write the experts. If Emmanuel Macron’s tax reform has had an effect – in addition to costing the State money – it is to stimulate capital income, as France Strategy states: “ It can be seen that all business groups see their dividend-to-balance sheet ratio increase as of 2018, in line with the concomitant reform of the PFU (the single tax at 30%, editor’s note). “Fortunately, Emmanuel Macron is” very sensitive to social voice “.

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