PRIME ACTIVITY – A GOLD MINE FOR THE GOVERNMENT IN 2018

Michel Sapin Finance Minister and his private secretary  Christian Eckert Budget officially launched March 16 the great reform of the withholding tax on income.

Listening to them, one wonders how we waited so long to get started, so it is simple and advantageous to the taxpayer. The law will be presented this summer, when everyone is on holiday, and come into effect on 1 January 2018 ... after the elections. Ha, ha.

The pair, however, already reveal the outline of mechanics, amazingly simple as them. A truly believe that all their predecessors were quiches to not to have thought.

So, just to the administration to establish an average tax rate for all taxpayers and to communicate it to his employer which will just add an additional line to levy an already overburdened pay slip, the release rate being supposed to not allow the employer to deduct the actual income level of its employee.

The spouse can also have a different rate even though both are common taxation. Bercy therefore stresses the goldsmith precision of the mechanism and common sense. Yet from that moment the demonstration, doubt arises. Indeed, if both spouses have a common tax rate but different in their employer, it is questionable if there will be no error of perception in one of the two. And with each new precision of the Minister, the objections arise as dry.

Thus, it is expected that the reform will also affect the self-employed, however, do not know their results immediately. Bercy has devised a solution for them of making first pay the tax on the basis of previous years, and then navigate to view the liking of professional estimates.

In other words, did exactly like today with the monthly payment, except that instead of being optional, it becomes mandatory.

A similar device is then scheduled to land revenues with a payments system. So this is again to make mandatory the monthly payment that was previously left to the free choice of the taxpayer, and especially immediately impose only income from assets that were not yet, since interest and dividends from several years subject to an interim system.

Practical difficulties, they are ignored. So, how to avoid that awaits the end of the year to do too défiscaliser advance tax? As for the repayment of the overpayment will be there plus default interest? Companies that collect taxes they will be compensated for the costs incurred? And above all, make the white year?

The Minister indicated that the tax revenues of 2016 will be paid in 2017 as usual, while the 2018 income will be taxed immediately. In other words, if there is no double taxation for the taxpayer and not the year without tax collection for the state, the fact remains that, according to the same words of Bercy, 2017 will not be taxed. But how Bercy he has banned taxpayers to take advantage of such a windfall to maximize their income on 2017? Radio silence on the subject.

Established in 2018, the withholding tax will in fact be a poisoned chalice for the new majority likely, especially with an election scheduled for 2017 be the year without tax. How then will the newly elected officials to handle the situation as of spring 2017? Initiate such end of term reform is either vicious or irresponsible.

In addition, we see that the first real effect of the withholding is to mandate a monthly payment which is currently optional. So it is for the state to gain a few months of cash. It's always taken it to but it's also the disturbing testimony of a state-indebted desperate, desperate to type as fast its own expense.

Certainly this will reassure Brussels on our ability to get tax while he is increasingly unpopular. This is also where the second effect of the deduction: Eroding slightly more popular consent to taxation. Contrary to what appeared to believe Michel Sapin said that when the tax return is unavoidable and symbolizes "Republican gesture of consent to taxation", the withholding demonstrates instead that citizens still willing to declare revenue but less to pay the tax, especially when used to relieve the misery of the world and not his.

To secure the supply, so nothing better than a line of more of many on the pay slip. It's as painless as adding a few degrees to the frog being cooked in the pan ...

This year the government has decided to give to all those that are employed but do not get the minimum salary a prime of activity. But, in 2018 we will pay for it; if we continue to benefit from it in 2017.

They give you a slice of bread now, but, we will pay two slices of bread with butter!

SAISI