France the champion of Europe of taxes? Yes, but these levies "allow to finance a whole range of social benefits"

In the midst of the mobilization of "Yellow Vests", these Eurostat figures are likely to find an important echo. According to the statistical research body of the EU, France is the European tax champion for the third year in a row. Taxation represented 48.4% of GDP in 2017, compared to 40.2% for the European average. To explain this figure, franceinfo interviewed Jean-Yves Mercier, an honorary lawyer and member of the Conseil des fiscistes.

Franceinfo: France is the European country where the share of tax revenue as a percentage of GDP is the highest. Does that mean that France is the European country where people are asked the most?

Jean-Yves Mercier: Overall, yes, it is. But what is fueling the public coffers? Those are on the one hand taxes and on the other hand, so-called social contributions. The latter make it possible to finance a whole range of social benefits: the family allowances, the minimum old-age pension, housing allowances or unemployment. In detail, France owes its first place to the importance of social contributions, which represent 18.8% of GDP, against 13.3% on average in the European Union.

Does this mean that France is the country where there are the most benefits?

Yes, it's pretty clear. Social contribution money is redistributed to contributors in a very efficient and objective manner.

French social security coverage is much more generous than those of our neighbors.Jean-Yves Mercier, member of the Council of Tax Professionalsat franceinfo

On the contrary, income and wealth taxes represent 12.8% of GDP in France, compared with an average of 13.1% on a European scale. Does this mean that the owners are well off in France?

Not at all. When one delves into the details of the categories, one realizes that France is distinguished by a very high rate of deduction of real estate and wealth. Much more than abroad. This is also the case for the taxation of the production of enterprises. Conversely, the trend is less clear with respect to income taxes. But overall, it is important not to deduce that heritage is less taxed in France than elsewhere. It's the opposite.

Emmanuel Macron has set itself the objective of easing taxation, but yet France is still the European champion …

These Eurostat figures are for 2017, the year Emmanuel Macron took office. The government plans to reduce the overall rate of levies required. To give an example: it is envisaged to replace the CICE with a reduction of employers' contributions for companies. In the 2019 budget, the Treasury will lose 20 billion euros. This represents approximately 0.8% of levies required. It will therefore be necessary to see if this clbadification of Eurostat evolves in the coming years.