Tax Bludgeoning and Reduction in Structural Deficit

Cristina Peicuti

Chapter 12 in A Monetary and Economic History of France since 1944, 2026, pp 163-170 from Springer

Abstract: Abstract During the presidential election campaign, François Hollande promised that annual income over €1 million would be taxed at 75% for two years. However, France’s Constitutional Council threw out this “exceptional solidarity contribution.” In response, in March 2013, Hollande announced that this contribution would be paid by firms. Capped at 5% of company sales in 2013, it was payable for two years on amounts paid by way of a salary exceeding €1 million. It generated €420 million in tax receipts but harmed France’s attractiveness. François Hollande declared that “finance is the adversary” and created BPI France, a public investment bank. The competitiveness and employment tax credit came into force on January 1, 2013. According to France Stratégie, the effect on employment was positive, but came at a huge cost. For example, in 2016, “the total effect is still estimated at around 100 thousand jobs, which is low compared with the cost of the tax credit—around €18 billion in 2016.” As for improving competitiveness, the tax credit had no visible impact on the evolution of France’s foreign trade balance. Though the industrial sector had been the intended target initially, it accounted for only 19.4% of the tax credits applied for.

Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-032-17596-0_12

Ordering information: This item can be ordered from
http://www.springer.com/9783032175960

DOI: 10.1007/978-3-032-17596-0_12

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().