It is time that the other half to join them

One of the best weapons of the France in the international competition is the attractiveness of our territory. The France is the most visited world country. We receive each year more than 70 million visitors. More than our people. Our art of living, our culture attract. We are one of the first land of welcoming foreign investment. We can take advantage of this situation by reviewing our system of taxation of income and encouraging visitors to spend more time in our country, and to create wealth.

This asset should help us to keep in France our best companies, their centres of decision and the exceptional talent of one of the best educational systems in the world and to attract investment and the brains come from all corners of Europe and the world. A simple but realistic weapon: abolish the tax on income (IRPP) in France. The best way to do this is to pay the tax to those who spend their money in France and not to those who earn it in France. It is to remove the income tax. Unrealistic Half of the French pay no income tax. It is time that the other half to join them. The idea seems farfetched and reactionary, but if you take the time to this article, you will understand that this idea is both practical, socially fair and effective. The France is even the country in the world who have the most to gain by applying.

Before the era of globalization, economies very closed and regulated allow easy control of the sources of revenue generation. Since the deregulation of markets, the fall of geopolitical barriers and the globalization of the economy, it becomes more and more easy to earn his money anywhere and spend elsewhere. It is therefore more difficult to understand the source of the income and the base of taxation of the income tax which makes it less and less effective control system and its increasingly high cost of collection.

The basic principle of constituent of our tax system will be the same, namely: taxing progressively more affluent and save to the less privileged taxation of income. The concept "easy who treasures" must be replaced by that of "easy who spends." Fashion phenomena, life cycle more short products and technologies and the development of a society of consumption of leisure and services will be that easy taxpayer is if it spends money earned. Therefore, the taxpayer's expense and not at the time of the generation of income tax. The level of expenditure being proportional to income, the nature of the tax will be respected. The taxpayer is easy, more it will spend. More one goes up in the quality of products and services, more inflation that these products and services are and will continue to suffer will be high indices of reference, which allows a larger collection of VAT.

How finance the loss of profits of the income tax while protecting the less advantaged By the TVA. To finance the Elimination of the income tax, it is sufficient to bring the rate of VAT from 19 to 26 France. Seven VAT represents the equivalent of the income tax. In France, the average rate of VAT is 19. VAT product represents three times the amount of income tax collection. Cost of collection is ten times less than the cost of the income tax collection, which gives it a productivity without equal.

This could be put in place on three or four years without impact on the wage indices and in any event with much less impact than the changeover to the euro. This measure will penalise households with incomes of modest (and non-taxable at the IRPP to date) for which no savings is possible because all of their income is considered to be spent. These households will suffer a loss of power for the purchase of the order of 7 of their income.

To counteract this surcharge, the more modest households with a declared income less than or equal to 30,000 euros per year will receive an amount equal to this surcharge. This concerns all those which are not taxed or pay a tax on the income of an average rate of 7 of the plan of a tax home. The France with the system of redistribution to the most advanced illustrated by the functioning of the family allowance funds, it is not complicated reverse 7 related to the rate of VAT to any tax home increase with modest incomes.

The increase in taxes on estates may come in addition to this elimination of the income tax to give all of our tax system more redistributive character while encouraging greater consumption.

The first benefits of this measure would be the following:

The tax base is much more precise and collection cost is minimized.

The reduction of "black work", which is today beyond any taxation VAT, since statements and justifications of income will be established to benefit from the refund of the surcharge.

A growing attractiveness for our country will ensure the maintenance of our companies and entrepreneurs on French soil, it will attract the elite of the world and will allow the France to host a greater number of decision centres. This increasingly affluent community largely help the collection of VAT to 26 by consumption.

The tax from VAT will also tax foreigners passage in France. Last year, there has been more than 70 million tourists in France. An increase of 7 of revenue on this mass will balance the trade balance and replenish the State that this measure has an any impact on the attractiveness of our country to tourists and foreign investors. We are always much cheaper than countries such as England or even the Switzerland, where the VAT rate is 7.

This reform of the VAT cannot be challenged in Europe since the Germany will be 16 to 19 VAT rate and the rate in the Denmark is already 25. This idea returns to the debate about the "single rate of taxation" (flat tax), but it has the advantage of redistributing wealth generated in the more modest families and thus to avoid what is alleged in the "single rate of taxation", namely the indiscriminate taxation of modest families. Finally, this measure will meet the fiscal dumping practiced by other countries for several years, thus attracting entrepreneurs and creators of wealth and jobs.