4 ms·

>> Not to mention, France is increasingly an outlier in Europe with a punishing corporate income tax rate (33%). > In line with Germany. The problem in France

>> Not to mention, France is increasingly an outlier in Europe with a punishing corporate income tax rate (33%). > In line with Germany. The problem in France is not corporate income tax, as some huge companies do not pay that tax with creative but perfectly legal accounting. The problems are with the "taxe professionelle" which is not based on revenues and the taxes on labour. If some employee receives 2000 euros, usually the company has to provision 3000 to 4000 euros. Most of those labor taxes go to the social security organism which has a budget as large as the state budget. (Edited for grammar and clarity)

Totoradio 10y ago
> The problems are with the "taxe professionelle" which is not based on revenues and the taxes on labour. The "Taxe professionnelle" was abandoned in 2010/2011.
- JPLeRouzic 10y ago
  True, it was abandoned, and replaced by "Contribution économique territoriale" which is more or less the same thing. https://fr.wikipedia.org/wiki/Contribution_%C3%A9conomique_territoriale https://fr.wikipedia.org/wiki/Contribution_%C3%A9conomique_t...
maelito 10y ago
You're talking about "Cotisations sociales", and maybe about "Taxe sur les salaires" which I think concerns banks.
- JPLeRouzic 10y ago
  Yes about "Cotisations sociales", and thanks for adding "Taxe sur les salaires", I did not know this one which seems to apply to specific businesses.
vidarh 10y ago
> If some employee receives 2000 euros, usually the company has to provision 3000 to 4000 euros. Most of those labor taxes go to the social security organism which has a budget as large as the state budget. (Edited for grammar and clarity) This is similar in the UK with employers national insurance contributions. Total tax wedge in France is higher than the UK and higher than the OECD average, but still in line with Germany according to the OECD [1], just as I stated. Note that the OECD tax wedge data covers total cost paid by both employees and employers. [1] https://data.oecd.org/tax/tax-wedge.htm#indicator-chart https://data.oecd.org/tax/tax-wedge.htm#indicator-chart

Totoradio 10y ago

> The problems are with the "taxe professionelle" which is not based on revenues and the taxes on labour. The "Taxe professionnelle" was abandoned in 2010/2011.

JPLeRouzic 10y ago
True, it was abandoned, and replaced by "Contribution économique territoriale" which is more or less the same thing. https://fr.wikipedia.org/wiki/Contribution_%C3%A9conomique_territoriale https://fr.wikipedia.org/wiki/Contribution_%C3%A9conomique_t...

maelito 10y ago

You're talking about "Cotisations sociales", and maybe about "Taxe sur les salaires" which I think concerns banks.

JPLeRouzic 10y ago
Yes about "Cotisations sociales", and thanks for adding "Taxe sur les salaires", I did not know this one which seems to apply to specific businesses.

vidarh 10y ago

> If some employee receives 2000 euros, usually the company has to provision 3000 to 4000 euros. Most of those labor taxes go to the social security organism which has a budget as large as the state budget. (Edited for grammar and clarity) This is similar in the UK with employers national insurance contributions. Total tax wedge in France is higher than the UK and higher than the OECD average, but still in line with Germany according to the OECD [1], just as I stated. Note that the OECD tax wedge data covers total cost paid by both employees and employers. [1] https://data.oecd.org/tax/tax-wedge.htm#indicator-chart https://data.oecd.org/tax/tax-wedge.htm#indicator-chart