Three possible taxes to ensure fiscal solvency
In a situation like the present one, where the public debt ratio is high, there are three tax options to restore fiscal solvency: Increasing a "normal" tax (VAT, social contributions, direct taxes); if we look at the euro zone, this was used from 2010 to 2012; in France, it was used from 2010 to 2017; Using the inflation tax, which is a tax on cash holdings; this is no longer possible: given the increasing labour market flexibility, even expansionary monetary policies no longer bring back inflation; Using interest rates that are lower than the growth rate: this is equivalent to taxation of savers, which has been used in the euro zone and also in France since 2014.