Report
France does not have too much tax, but too few jobs
If France had the same employment rate as Germany, the Netherlands, Denmark, Sweden or Finland, its employment rate (among those aged 15 to 64) would be 77% and not 68%. Its level of employment would then be 13% higher, and even if these new jobs were less productive than jobs as a whole, its level of GDP would be 10% higher. If tax levels were to remain unchanged, the tax burden in France would fall from 45% to 40.5% thanks to this additional GDP, which should be compared with the average tax burden in the euro zone of 40.2%. This back-of-the-envelope calculation shows that France is not actually suffering from an excess tax burden, but from an insufficient employment rate.
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Natixis
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Patrick Artus
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