Taxes on Savings and French Households Portofolio Choices

Résumé 0

French taxes on household savings comport several features. First, their steep level: in 2016, they represented 6 % of Gross Domestic Product (GDP), putting France in first place, tied with the United Kingdom, in the European Union (EU), for which the average rate is 3.8 % (3.5 % in the eurozone). Secondly, these taxes, looked at both separately as well as in comparison with other countries, are characterized by their unstable nature, as well as their complexity and the creation of distortions in favor of certain products or intermediaries, particularly risk-free savings, intermediation by life insurance, and company savings plans. On the basis of this observation, the article begins by questioning whether the taxation of household savings in France is appropriate from a theoretical point of view. It then goes on to evaluate its impact on asset allocations and the financing of the economy. The accent is placed on financial savings, particularly in the second part of the article. JEL Codes: D14, H24, H31.