Report
Patrick Artus

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.
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Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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