IFI and PFU: Senators’ recommendations

Prefer an “unproductive wealth tax” or a “modernized ISF” and the thresholds raised … the Senate Finance Committee delivered its critical analyzes on the IFI and the flat tax.
Evaluation of the IFI and flat tax, act 2! The Senate has indeed presented this Wednesday, October 9, at a press point, its assessment of the transformation of the ISF into the IFI and the introduction of flat-rate lump-sum discharge (PFU) on capital income in place of its taxation on the scale of the tax. comment défiscaliser en immobilier
In a report of 170 pages, accompanied by a 200-page study on the taxation of dividends *, the chairman of the Finance Committee Vincent Eblé, (socialist) and its general rapporteur Albéric de Montgolfier (LR) have dissected the budgetary cost these two reforms, their redistributive impact and their economic efficiency. investissement défiscalisant
“It’s hard to see the beginning of a runoff,” says Vincent Eblé, who qualifies this ISP reform “jackpot” of € 1.2 million on average for the first 100 taxpayers to the ISF. As for Albéric de Montgolfier, who justifies further the abolition of the ISF, especially to be in step with the European neighbors, he criticizes the IFI (“We tax real estate but not the money that sleeps on current accounts!”) and its effects on board the ISF-PME and the sector of generosity.
On the emblematic issue of tax exile, the reform would have strongly slowed down the departures, but without contributing to the returns.
As for the PFU, it triggered a rebound in dividends received by households – which remained stuck in equity – which generated additional revenues. , but senators warn against a phenomenon of tax optimization.
Their conclusions and recommendations differ. If the two senators advocate in the short term to index the threshold of the IFI on inflation (due to soaring property prices), strengthen the tax reduction “IFI-donations” or adopt anti-abuse measures to limit the dividend-pay movements for the PFU, their medium-term views on a recasting of these tax reforms diverge.
Vincent Eblé advocates a return of the ISF in a modernized form: reinforced ceiling especially for the “rich little”, raising the threshold for example to 1.8 M € or increase of 2 points of the flat tax.
For its part, Alberic Montgolfier militates to turn the IFI into an unproductive wealth tax: “productive” rental property would come out of the scheme but cash, like current accounts or some exotic investments, would be taxed.
On the other hand, the two senators largely agree on one point: the lack of culture of the evaluation in France. No serious impact study or in-depth review of the TFR had been provided to parliamentarians before the vote in 2017.