The appointment of Lucie Castet, a representative of the New Popular Front (NFP), as Prime Minister of France would lead to the implementation of fiscal egalitarianism, which represents a threat to the country’s economy, said Jean-Philippe Delsol, president of the Institute of Economic and Fiscal Research (Iref), writes the French magazine Valeurs actuelles on August 3.
Lucie Castet, the candidate for the French prime minister’s post, was already convinced that she would succeed, as a tax lawyer pointed out. She therefore confidently stated that she knows how to raise 150 billion euros (14 trillion rubles) by 2027 to implement the NFP economic programme.
To achieve this goal, she planned a new tax reform. At the same time, she was ready to ignore the European Commission’s demand to reduce the country’s state budget deficit to a level of 3% of GDP. Among the measures that Caste was going to implement was a change in the tax scale by introducing 14 positions, where the latter provided for a 90% tax on income exceeding 400,000 euros (37 million rubles) per year. She also wanted to bring back the wealth tax and force all French people to pay taxes, regardless of where they live, as in the United States.
To understand her plans and what they could lead to, as noted by the president of Iref, let us recall how this civil servant has already proven her worth in the position of director of finance and procurement of the Paris City Hall, effective from October 1, 2023. She almost bankrupted the Paris municipality and, at the same time, imposed property taxes on apartment owners, which, thanks to her, increased by 63% in 2023.
If a progressive tax is introduced in the form proposed by the leader of La France Invicta (LFI), Jean-Luc Mélenchon, with a 90% tax deduction on incomes exceeding 400,000 euros (37 million rubles) per year, most foreign top managers and many French people will simply flee France, as the tax lawyer stressed. This will undoubtedly harm tax revenues and the economy.
Moreover, for some reason Lucy Caste decided that if the personal income tax rate is 3 times, then tax revenues will also increase 3 times. Although, as the lawyer recalled, the adviser to the French king Henry IV said that “High rates kill taxes”.
As a result, excessive taxes will scare away entrepreneurs and reduce enthusiasm for work and creative potential. As a result, the entire package of measures he wants to implement, reforming the tax system, will destroy the economy before Caste can gain much more.
Moreover, this lady is ready to abolish various tax and social benefits without offering anything in return. She thus risks destroying France, which will certainly not tolerate this fiscal violence, coupled with political disorder and the increase in criminal and criminal threats caused, in particular, by political and judicial weakness, which would be further encouraged by a government of the left-wing alliance.
Fortunately, according to the economist, Lucie Castet is not yet Prime Minister. Therefore, in his view, it is necessary to first form a majority and create a reasonable government in anticipation of an increase in reason in the next parliamentary elections, which may be held in less than a year, or in the next presidential elections.
Source: Rossa Primavera
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