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The Distributional Impact of Local Taxation on Households in France

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  • Clément Carbonnier

Abstract

[eng] The distributive profile of local taxation on households results from three main determinants: the tax base (the rental value of occupied or owned properties), the schedule (of exemptions and reductions) and the differences between local rates. The overall contribution of local household taxes to the progressivity of compulsory levies in France is measured and bro­ken down into the three determinants based on the Insee survey on income and living conditions (Statistiques sur les ressources et conditions de vie, or SRCV) at household level and compre­hensive databases at the local authority level. The tax base has a regressive effect, partially offset by the schedule. Local taxes and average income increase with the size of inter‑municipalities: territorial heterogeneity is thus characterised by levels of local tax per capita that tend to increase with per capita income. However, this increase is less than proportional to that of income, gen­erating a ratio of local taxes to income that decreases with the level of average income in the inter‑municipal area.

Suggested Citation

  • Clément Carbonnier, 2019. "The Distributional Impact of Local Taxation on Households in France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 507-508, pages 31-52.
    • Handle: RePEc:nse:ecosta:ecostat_2019_507-508_3
    DOI: https://doi.org/10.24187/ecostat.2019.507d.1977
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    Cited by:

    1. Clément Carbonnier, 2022. "From the Main Determinants of Self‐Declared Minimum Income to the Measure of Sub‐National Purchasing Power Parity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(3), pages 738-769, September.
    2. Clément Carbonnier, 2021. "Family-Based Tax and Transfer System – Issues for Income Tax and Other Public Policies," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 526-527, pages 41-48.

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    More about this item

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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