Business tax system

BUSINESS TAX SYSTEM

Introduction :

Why inequalities are existing.
🡪 role of state (gov.) is to explain economic, social and political rules that justify inequalities: link between inequality and economic ideology.
° taxation legislation

Definition : 

Ideology: group of ideas and speaches that explain how to organize human beings in a group; proprietorship

Policies aimed at reducing or favoring inequalities:
- education: convey (transmettre) cognitive and spiritual information
- taxation
- proprietorship: is define by laws

How to reduce inequalities 🡪 

progressive taxation on revenues and inheritages

Introduce in the USA during the “GILDED 1865 to 1900 PERIOD”
Ex : Marginal rate of taxation - 80% in the USA, 89% in the UK, 60% in France
🡪 marginal rates were lowered during the 1980’s under Reagan,(30-40%) in the UK, Tatcher (40-45%) to boost the growth rate of the PNB; it also boosted inequalities; one of the consequences is “popularism”, another is limitation to the access to highr education.
1872 : tax on dividends and interests; progressive tax on the goal income. (maximum rate : 5%)

Key points in history : [pic 1]

Justification: concept of the “market” (invisible hand- Adam Smith) “lazy explanation” that legitimates inequalities. 1% of the population was owning 45% of the French wealth
Up to WWI there is 2 characteristics :
🡪 Transfer duties: (droits de mutations) transfers of ownership that have 2 origins:
* inheritage : 1% till 1901; after progressive rate from 1% to 6,5%
* other taxes : les 4 vieilles = the housing tax (taxes habitation)
* professional tax; tax on doors and windows; property tax (taxes foncière) was accounting for the 2/3 of the receipts.

Part. 1 : The European Union

Part. 2 : United States, Switzerland

Part. 3 : Tax Paradises

...