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commission on fiscal imbalance 合集

Specialized taxation can by and large be broken down

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Unformatted text preview: deadline, failure to record compulsory expenditures (debt due and expenditures made compulsory by law), the absence of genuine balance in the budget section by section, and the absence of a vote or imbalance in the administrative account. In principle, the CRC judges the legality, not the advisability, of the employment of funds. 230 Commission on Fiscal Imbalance 3.5. Local taxation overlaps and is specialized ♦ The financial resources of local communities include taxes, fees, various forms of aid paid by the State, by Europe or by other local communities, to which are added proceeds from borrowings and gross saving for the financing of investments. The French system is characterized by the prominence of local tax resources, their great variety and the considerable complexity of the rules governing the apportionment of State funding. ♦ Taxation predominates in local budgets and accounts for nearly two-thirds of operating revenues. There are over 40 local taxes of varying importance. Local authorities have at their disposal several optional tax es, e.g. an electricity tax and a visitors’ tax, and may grant temporary exemptions. ♦ The taxation system centres on overlapping and specialization. ♦ The four most important direct taxes overlap, i.e. the communes, departments and regions independently vote on the tax rates that apply to the same taxation base, without the deductibility of taxes collected at a lower level. This is true of the property tax on undeveloped property (TFNB), the property tax on developed property (TFB) and the housing tax (TH), which are based on cadastral values that are supposed to represent the revenue from the property in question. However, the bases have not been subject to general review since 1970 and are simply reassessed homothetically each year in light of the failure to implement the review effected in respect of 1990. The housing tax, of which the regional share has just been eliminated, is subject to keen criticism because of its regressivity in relation to income. ♦ The fourth and final local direct tax, the business tax (TP), constitutes (or rather, constituted) a high-yield tax. Until recently, this tax alone accounted for nearly half of the tax revenues of local authorities. It was very unevenly distributed and was the principal cause of the very great disparity in tax wealth between local authorities. Based on salaries (18% of the total payroll until 1999) and the rental value of fixed assets (investments), it is very poorly tolerated by businesses, which call into question the anti-economic bases and distortions in rates between local authorities, although contributions are capped in relation to the establishment’s added value. ♦ The last category of overlapping taxes includes additional transfer taxes and taxes related to urban planning. ♦ Specialized taxation can, by and large, be broken down as follows: — in communes and groups of communes: - garbage collection taxes - payments to fund public t...
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