Taxation in France
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:''See [[Government of France]] for a wider perspective of French government.''
{{Public finance}}
'''Taxation in France''' is determined by the yearly vote of the budget by the [[French Parliament]], which determine what kind of taxes (or quasi-taxes) can be levied and which rates can be applied.
French public and quasi-public budgets can be classified into three categories:
* The budget of the national government (288.8 billion [[euro]] forecast in [[2005]] [http://www.premier-ministre.gouv.fr/information/les_dossiers_actualites_19/budget_etat_pour_2005_141/]).
* The budgets of [[social security]] organizations. These are ''private'' organizations endowed with a mission of public service (even though they behave to a large extent like public administrations).
* The budgets of the various local governments.
It is important to note that the social security budgets are larger than the budget of the national government. Both the national government's budget and the social security budgets run [[deficit]]s.
==National government==
As of 2005, the project tax revenue was 340 billion [[euro]], before various refunds. ''(All percentages below relative to project tax revenues for 2005. See [http://www.minefi.gouv.fr/pole_ecofin/finances_Etat/LF/2005/plf/plf2005chiffrescles.pdf the finance law project]).''
The most important taxes are:
* The [[European Union Value Added Tax]] (TVA), a variant of the sales-tax: 48% of tax revenue.
* The [[income tax]] (''impôt sur le revenu''): 16% of tax revenue.
* The tax on corporations: 12% of tax revenue.
* The tax on petrol and fuels (TIPP, ''taxe intérieure sur les produits pétroliers''): 6%
The national government also perceives a tax of solidarity on fortune, levied on the fortunes of the most wealthy of the population. While this tax actually collects very little revenue (2%), it is very controversial, since most of the [[left-wing|Left]] considers it a symbol of solidarity, while many on the [[right-wing|Right]] argue that it incites [[entrepreneur]]s to leave France.
===Income tax===
French income tax is a [[progressive tax]], i.e. tax is an increasing piecewise affine continuous function of income (excluding various rebates etc.). This means that the amount of income earned up to a certain amount ''t''<sub>1</sub> is taxed at a rate ''r''<sub>1</sub>, then the ''remaining'' money, up to a certain amount ''t''<sub>2</sub> is taxed at a rate ''r''<sub>2</sub>, etc.
===See also===
*[[Copernic tax project]]
*{{fr icon}} [[:fr:Liste des impôts et taxes françaises|list of taxes in France]]
===External links===
* [http://www.minefi.gouv.fr/pole_ecofin/finances_Etat/LF/2005/plf/index-b.htm 2005 project of Finance Bill] ([[Minister of Finances (France)|French Ministry of Finances]])
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[[Category:Taxation in France]]
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