IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04120487.html
   My bibliography  Save this paper

Impacts of the 2018 Household Capital Tax Reforms on Inequalities in France: A Microsimulation Evaluation

Author

Listed:
  • Félix Paquier

    (ENSAE - Ecole Nationale de la Statistique et de l'Analyse Economique - Ecole Nationale de la Statistique et de l'Analyse Economique)

  • Michaël Sicsic

    (Université Paris-Panthéon-Assas, CRED - Centre de Recherche en Economie et Droit - Université Paris-Panthéon-Assas)

Abstract

[eng] This study assesses the impact on standard of living inequality and public finances of the transition from the tax on wealth (ISF) to a tax on real estate assets (IFI), the introduction of a flat rate tax on capital income (PFU), and the increase of the social tax (CSG) on capital income in 2018. We achieve this through the use of the Ines microsimulation model and the ERFS data, which we supplement by imputing the wealth held by each household on the basis of the Household Wealth survey (enquête Patrimoine) and tax data on the ISF and IFI. In the short term, the positive impact of these reforms on standards of living is highly concentrated at the top end of the distribution, although the gains are limited by the increase in the CSG. The cost to public finances is 3.4 billion euros per year. Although they lead to additional public revenues, the short term behavioural effects of the flat tax on the dividends received by households further accentuate the rise in the standard of living of the wealthiest households.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Félix Paquier & Michaël Sicsic, 2022. "Impacts of the 2018 Household Capital Tax Reforms on Inequalities in France: A Microsimulation Evaluation," Post-Print hal-04120487, HAL.
    • Handle: RePEc:hal:journl:hal-04120487
    DOI: 10.24187/ecostat.2022.530.2066
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-04120487. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.