France: How has the increase in the tax burden been used?

Since 1995, France’s tax burden has increased by 4.2 percentage points of GDP, of which 3.2 percentage points of GDP for the household tax burden and 1.0 percentage point of GDP for the corporate tax burden . This increase in the tax burden now faces reject ion in France. But what has it been used for? What has it financed ? This question is key to determining whether or not the opposition to the increase in the tax burden is justified . We find that the tax burden has financed an increase in spending on social welfare (pensions and healthcare ) and an increase in aid to companies , whereas there have been reductions in public spending on education and R&D as well as in spending on defence , security and justice and in pub lic investment . This choice is probably very inefficient from the viewpoint of France’s long -term economic growth.