Fiscalité et redistribution

Abstract

The paper analyzes the structure of the French redistribution system, and investigates some directions for a reform. In the first section, we describe the existing system, with a particular emphasis upon incentives and redistribution. We conclude that the French system is redistributive, essentially through benefits. Disincentive effects appear costly ; furthermore, the complexity of the system contrasts with the straightforwardness of its aggregate effects. We then propose a « negative income tax » reform, based upon a lump-sum payment to all households and a taxation of all incomes at some basic rate, plus a higher rate for high incomes. We calibrate the model and evaluate its consequences.