Tuesday, January 10, 2012


Everyone is talking about inequality these days, but François Hollande has proposed to do something about it with a plan for tax credits that has received the imprimatur of the Treasury:
Suite à ces constatations, le Trésor a testé plusieurs scénarios de réforme du quotient familial. Selon Les Echos :

« L'intérêt de ces simulations est qu'elles collent parfaitement avec le projet socialiste : les scénarios étudiés ont été calibrés pour assurer un rendement constant pour l'Etat, ce qui est l'objectif visé par François Hollande. »
Verdict de ces différentes simulations (réduction d'impôt, abattement sur le salaire imposable, crédit d'impôt, etc.) : le projet du PS – remplacer le quotient familial par un crédit d'impôt forfaitaire pour chaque enfant – est celui qui, selon Les Echos, « réduit le plus les inégalités », car c'est « le seul à bénéficier aux non-imposables ».

Nevertheless, President Sarkozy calls the plan "crazy."

1 comment:

FrédéricLN said...

It's "crazy" in the meaning of "meaningless".

A tax credit for each family (or each child) is exactly what already exist : les allocations familiales.

The beef in this idea is : "suppress the "quotient familial", replace it by an increase in "allocations familiales"".

But which citizen with some experience of policy decision, would trust such a mechanism, you suppress a hard rule and say you replace it by "more money" on something else?

BTW, all this is very interesting. The "politique familiale" has never been seriously discussed by the general public during these 30 last years. (Exception : the debate on a suppression of family allowances when the child does not attend school as he should…).

Said otherwise, the "politique familiale" is an alloy of two agenda lines: help the poor, push adults to have children. It would be a hard job to recompose this "politique familiale" and yet keep these two aims. François Bayrou says "risky business" and that's it.

From my point of view, the right angle to push the two objectives and meet public opinion, is "la fiscalisation des allocations familiales" : to include family allowances in the household's income (for the computation of the income tax). There is no more "part salariale des cotisations familles"… (these cotisations are paid by the company, not the employee, and are not included in the taxable income). It's no new idea, there has been much debate on that, but so far only in the circle of policymakers and lobbyists. And it would not raise much money (less than 800 millions, I guess). http://www.lexpress.fr/actualite/economie/faut-il-fiscaliser-les-allocations-familiales_485386.html