retained at source taxation which is not the lesser ambition

The national commission of the Socialist project is conducive to a comprehensive tax reform, affecting both households that businesses, to make the tax "more redistributive" and "more virtuous".

A merger spread,

Because sensitive tax

the income and the contribution

social widespread

In regard to taxation on the income of natural persons, the orientation adopted Wednesday by the national commission for the project of the Socialist Party is to gradually merge tax revenue and the CSG in making this last more progressive.

This project is in the right line of the Netherlands, adopted, motion this fall, at the Congress. It has, since then, theorized by Pierre-Alain mute, Economist, former advisor of Lionel Jospin at Matignon and close to the first Secretary, as support of a broad tax reform. "The merger of the IR and the CSG may be an opportunity to rebuild a true income tax to broad base, which could be more redistributive than today ' hui without increasing the marginal tax rates", he wrote in "Economic Alternatives" in December 2005.

In view of the extent of the upheaval to operate, the Socialists have, for the time being, chosen to tread, by advocating a process spread over five to ten years. The first step would be in place and place of the current premium for employment (EPP), an allowance on the CSG, the image of what the Government had attempted to Jospin in 2000 Finance Act a rebate to a third of the CSG on income up to 1.4 minimum wage.

The Constitutional Council had censored this measure on the grounds that it did not provide equality before tax as not taking into account family. In fact, except hostility of the social partners they would be consulted in advance to a taxation of the financing of social protection, quotients conjugal and family remain a major technical obstacle to the reconciliation of tax on income, familialisé, and CSG, which is not.

"We are holding not to make the constitutional project", says one of its artisans. "If it is part of a comprehensive reform, there is nothing wrong", is a member of the commission of the project. In fact, this is a bold project that draw the Socialists "coherent", said one of them that of a single, broader, more progressive and... retained at source, taxation which is not the lesser ambition. The France is the last country in the OECD to not directly tax the income.

A tax on corporations

modulated in function

the behaviour of the company

On an idea of Dominique Strauss-Kahn, the Socialist project proposes to tax corporations (IS) "a new instrument for the application of the priorities of public action." Clearly, a system of incentives would reward the virtuous enterprises in economic, social, educational or environmental. Runway preferred Wednesday concerning the results of the companies: would benefit those who prefer to reinvest their profits instead of distribute to their shareholders. The left had already practiced this policy in the 1980s, to the chagrin of the employers. And, in 1997, the Government Juppe had introduced an IS reduced for SMEs on condition that the capital increase.

Social contributions

management failover

on the value added

The reform of the financing of social protection was already in the program of Lionel Jospin in 2002 as well as in the resolution of le Mans. Jacques Chirac has appropriated the site early this year and asked Dominique de Villepin to study a failover of the contributions of the payroll to the added value of the business. PS, the objective is to return partly on relief of Aubry, Juppe and Fillon loads, which today represent more than 20 billion euros per year, on the grounds that they are not compelling in the creation of jobs. But as to the right to the PS hesitate on the solution to retain: value added or CSG, even, for some, the VAT which is historically untouchable in the Socialists...

To remove

tax benefits

made to heritage

Wealth solidarity tax was not raised at the meeting of the commission of the project. But, according to several members of PS, it is "obvious" that voted EWB relief since 2002 will be removed in case of victory the next year. François Hollande is also committed. The Socialists also say study "pragmatically" a widening of the base of the ISF and a decline in the rate. In addition, a return of the stock in the common law is envisaged. They are already subject to income tax, it would be therefore to delete the exemption of social charges which they are currently.