The “tax shield” Holland much more expensive than Sarkozy – The Tribune.fr

926 million euros: this is what it cost in 2014 to the French State capping the solidarity tax on wealth (ISF), fixed since 2012 to 75% of revenues, according to the latest data the tax authorities cited Monday, August 9 by Les Echos . An amount much higher than the tax shield, introduced in 2006 and abolished in 2011, the bill was around 600-700 million per year, although Nicolas Sarkozy has brought to the “only” 50% of revenues.

| Read: Holland restores a tax shield but locks the ISF (Article of 28.09.2012)

Moreover The cost of capping increases: it swelled by 27% compared to 2013, while the number of households having benefited increased 16%. Overall, the average amount returned amounted in 2014 to 104,415 euros.

The revenue of the ISF up

Two main factors explain the overall cost of capping the ISF against the tax shield, analyze Les Echos . First, the overall increase in revenues from this tax, whose performance in 2015 is expected to reach 5.6 billion euros. On the other, a rather restricted view of the ISF, which since 2013, due to a decision of the Constitutional Council can not integrate all interest from life insurance contracts and undistributed dividends, which facilitates the implementation of tax optimization mechanisms.

However, households benefiting from this tax measure are fewer than those who took advantage of the tax shield. In 2014 they were 8872 to see applied a cap ISF: ie less than 3% of indebted households and twice this tax unless the beneficiaries of the tax household

Revenues. less than 57,000 euros for half the beneficiaries

Most of them do not also to have extremely high incomes, show data Bercy half including declare incomes below 57,000 euros . This was also based on the consideration that the government had reintroduced in 2012 a cap ISF, bending to a decision in the sense of the Constitutional Council.

They have however the very large fortunes: one third of them, they exceed 10 million euros, thus absorbing 90% of money spent by the state as such refunds (€ 812 million in total and 246,674 euros on average) . The remaining two thirds of beneficiaries of the cap have, in turn, fortunes exceeding 5 million.