More than 13,000 wealthy French do not pay any income tax, according to Bercy documents
Documents reveal that a significant number of wealthy French households report zero or negative income tax.
According to documents from the French Ministry of Economy provided to the Senate, more than 13,000 affluent households eligible for the wealth tax (IFI) are reported to have either no income tax or negative income tax. The analysis shows that around 10% of those liable for the IFI display a zero or negative income tax rate. This trend indicates a concerning relationship between wealth and tax liability, where the wealthier individuals are less likely to contribute to personal income tax.
The report emphasizes that as real estate wealth increases, the likelihood of households reporting a zero or negative income tax also rises. For the wealthiest 0.1% of households, approximately 10.2% manage to pay no income tax at all, corresponding to around 2,500 households. Conversely, for the wealthiest 0.01%, this figure surges to 14.9%, affecting nearly 300 of the richest families in France. These statistics raise questions regarding equity in the tax system and the implications for public finances.
This revelation may prompt scrutiny of the current taxation policies in France, especially regarding how they serve different socioeconomic groups. With public services often funded by income tax, the inability of wealthy households to contribute adequately could create significant disparities in funding for essential services, ultimately raising concerns among the general populace regarding tax fairness and social justice.