Extract
[...] In addition, States are subject to the demands of MNCs, otherwise these latter will settle in low-tax countries. The CIT then becomes a fiscal instrument to attract FDI and as a result, there is a tax competition between States, or even a tax dumping, with the consequence of a decrease in tax revenues. Thus, over the past two decades, CIT rates have fallen by approximately 6 percentage points worldwide, and even 9.6 points in France, from 35.4% in 2022 to 25.8% in 2023. [...]
[...] BARRO Robert and SALA-I-MARTIN Xavier (1992), "Public Finance in Models of Economic Growth", Review of Economic Studies pp. 645-61 BRYS Bert, PERRET Sarah, THOMAS Alastair et O'REILLY Pierce (2016), "Tax Design for Inclusive Economic Growth", OECD Taxation Working Papers, No OECD Publishing, Paris pages. COUR DES COMPTES (2019), "The social niches: dynamic devices and insufficiently regulated, a rationalization to engage", October 2019. COUR DES COMPTES (2023), "Pilot and evaluate fiscal expenditures", July 2023. DIAMOND Peter A. and MIRRLEES James A. (1971). "Optimal Taxation and Public Production Production Efficiency", American Economic Review, March 1971, pp. [...]
[...] Thus, an optimal tax policy should be based on flat taxes that do not discourage investment. However, these are not easily accepted because they conflict with the principle that each person should pay tax according to their means (Saint-Étienne, 2011). It appears that the proportional tax is the least damaging at the economic level, and is politically acceptable, so that it is the cornerstone of any tax reform, which aims at efficiency and equity, in a globalized world marked by tax competition between States. [...]
[...] The literature on the impact of labor taxation on the use of labor is vast. Generally, empirical studies find that hours worked reacted only modestly to labor taxes, while participation reacted much more (Heckman 1993). Most empirical studies also find that the estimated elasticity of hours worked with respect to post-tax wages is very small for men, while it is more important for women (Saez et al., 2012). The degree of progressivity of the labor tax can also impact the decision of individuals to work and invest in education, as it affects the post-tax return. [...]
[...] Indeed, taxes are not neutral in terms of their effect on growth. In France, corporate tax is the tax that has the most unfavorable effect on growth, followed by income tax, then VAT. In addition, France stands out from other countries due to one of the highest tax rates in the world, with a dominant weight of VAT as the tax that provides the most yield. A tax reform is necessary in France, as a pillar of growth relaunch, but also to balance the system. [...]
