Tuesday, February 1, 2011

Blue Tooth Headset Danger

"income young" for all and unconditional?

About www.révolution-fiscale.fr The buzz generated by the small book by Thomas Piketty, Camille Landais and Emmanuel Saez is a sign that the public interest is ultimately not a moribund concept. It is rather the case of our tax system, whose defenders are scarce, "the income tax has become so unreadable that you can not reform it in the lowered still further . Better to hasten its end. " De Profundis. It is commendable method first. The simultaneous availability of a complete simulation environment (
www.revolution-fiscale.fr ) is a very significant innovation. Especially since the choice - unconventional - to establish a set of virtual files containing 800,000 observations is the only one that allows access to all the variables necessary to simulate the whole compulsory levies. It is a remarkable contribution, complementing our tool for generating test cases (available at www.allocationuniverselle.com ). Let us now look at the proposals in light of our own work on the concept of universal benefit. First finding very encouraging: three proposals in the book are in line with the concept that we develop. In terms of family taxation, we read with pleasure on page 105: "We present the reform scenario, the simplest, which is to use a tax credit that would replace all at once the family quotient, the family allowances, the family income supplement, the new school year allowance, the allowance family support and the provision of early childhood home base ". The proposed amount is 190 € monthly per child, equivalent to the 192 € we had calculated in 2009 for the universal benefit paid to minors. The benefit was clearly identified: "This system would have the advantage of being incredibly simple and readable and his administration would be less expensive than the current system." regards young people aged 18-25, Piketty et al also propose a reform "ambitious" Page 109: "it is to provide" income young "to all young people regardless of the resources of their parents (...) funded by the removal of all current transfers".
Finally, it is proposed to page 113 of the systematic payment of RSA "to simplify matters for beneficiaries - especially that of recipients who work - and to help modulate the amount of automatic monthly allowances based on current income Administration could use the monthly returns for employers (Monthly and extend these statements to other payers) and pay a monthly amount of allowance modulated according to monthly income. After
suggested - rightly - the merger of the PIT and the CSG, the integration of imputed rent in the tax base, removing all niches , individualization and the withholding tax, it's missing much so that our three friends embrace the concept of redistribution provided by taxation, the following simple equation we propose (y = ax - b) where the tax is calculated by sampling proportional to the total revenues, which we subtract "b", the basic allowance to each recognized on an individual basis (400 € per adult, 200 € per child), thereby ensuring the necessary progressivity of taxation.
That lack does it mean?

A central proposition of the book is that of replacing the formula with the schedule of income tax by applying an effective tax rate to the full income and no longer marginal rate as is the case today. This practice leads to a complication, which preclude the deduction at source, as aptly described on page 81: "Where an employer - or any other body - pays an income stream, it is uncertain what rate to apply. For example, an employer pays a salary of 1100 euros gross and feels obliged to collect 2%. But he knows that his employees will receive higher wages at year end (perhaps with another employer) or it has income Heritage (maybe more) in value so that its real annual income will be more than 60,000 euros (5,000 euros per month) in which case the tax due is 13% and not 2% ". The recommended solution is grotesque: "To address these issues, the tax administration must convey to employers the total tax rate actually practice the previous year. And in any case, a corrective statement was made early in the year following each receives a statement pre-filled listing all income and payroll deduction already made, and corrected if necessary. " A similar mechanism is proposed on page 119 concerning social security contributions, without more convincing. Let
to Piketty and al the time to understand the immense value that represents a proportional sample of income, supplemented by a basic allowance calculated and paid monthly by the tax authorities.
The second weakness of the book is a surprisingly simple which is treated with the feasibility of passing a tax rate of about 15% to 60% of the highest incomes. The argument on pages 96-100 is dilatory, unable to reassure us about the risk of systematic avoidance of the richest.

In conclusion: congratulations for the work and the progress convincing on many points. There is still a small effort required to achieve a totally balanced proposal.


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