Loi de finances 2018 et fiscalité du capital. Fondements et impact sur les taux marginaux supérieurs

Céline Antonin and Vincent Touzé

Revue de l'OFCE, 2019, vol. N° 161, issue 1, 77-112

Abstract: In this article, we study the impact of the 2018 Finance Act (LF2018) on higher marginal tax rates. We first turn to changes in capital taxation over time and the impact on economic choices and the measurement of marginal tax rates. We then discuss the economic arguments that led to the adoption of the single flat-rate PFU levy (the prélèvement forfaitaire unique) and the partial abolition of the ISF wealth tax (impôt de solidarité sur la fortune). Finally, we calculate the marginal pre-reform economic rates for different asset classes, then evaluate the impact of the 2018 Finance Act. We show that the replacement of the ISF by the IFI property wealth tax (impôt sur la fortune immobilière) has helped to bring down the top marginal rates below 100%. Our calculations also highlight two effects of the life insurance reform: the PFU reduces the tax on withdrawals before 8 years; for the part of the policies above 150,000 euros, the taxation becomes independent of the time period held. The taxation of capital gains realized on securities also no longer depends on the time period held. In addition, the fall in corporation tax (IS) is helping to reduce marginal rates significantly. Finally, it is with respect to bond income that the tax reduction is the strongest.

Keywords: capital taxation; marginal tax rate; tax reform (search for similar items in EconPapers)
Date: 2019
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Related works:
Working Paper: Loi de Finances 2018 et fiscalité du capital. Fondements et impact sur les taux marginaux supérieurs (2019)
Working Paper: Loi de Finances 2018 et fiscalité du capital. Fondements et impact sur les taux marginaux supérieurs (2019)
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