This study was commissioned by the Committee for the Evaluation of Capital Tax Reforms, under the auspices of France Stratégie, with a view to understanding the impact of the solidarity tax on wealth (ISF) and its conversion into the property wealth tax (IFI), on funding, investment, employment and governance of French firms.
Évaluer les effets de l’impôt sur la fortune et de sa suppression sur le tissu productif
This report sets out to empirically evaluate the impact of wealth tax on the productive sector by analysing the conversion of the ISF into the IFI in 2018.
Reference IPP Report No. 36
Presentation
Method and Data
● This study stands out for its use of exceptional data, made available to researchers for the first time thanks to an unprecedented joint effort by teams from the Directorate-General for Public Finances (DGFiP), the Centre for Secure Data Access (CASD) and The Institut des politiques publiques (IPP).
● In particular, this involved constructing a matching table that makes it possible to determine the personal tax situation – in respect of the ISF-IFI and income tax – of the key individual shareholders of several million French firms.
● Thanks to this table, it is now possible to measure the assets of households subject to the wealth tax (ISF) as well as their exempt business assets. These data make it possible to assess the extent to which household taxation is likely to impact a firm owned by individuals who are French tax residents.
● The study is also one of the first to use a linkage between the wealth tax returns database and the income tax returns database.
Partners
