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Additional resources for OECD Economic Surveys 2000-2001: France
The fall in unemployment concerned most categories of job seekers, irrespective of gender, age, level of qualification, social class or region of residence. Thus the situation has improved for youth and unqualified persons, two groups previously highly vulnerable to unemployment and until now unable to benefit from rising employment. Nevertheless, the unemployment rate for youth and persons designated as “low-skilled” (with no academic qualification or just a certificate of primary education) is still well above the national average.
Cuts in indirect taxes, which are largely independent of income level (residence tax, road tax, real estate transfer tax), have also been of proportionally greater benefit to the lowest income groups. On the other hand, indirect taxes, and particularly VAT, are not effective tools for the purpose of income redistribution, since the basic pattern of taxation on households’ consumption varies little with income. As a result, it is more costly to achieve a given redistribution target through indirect taxation than by way of direct taxes or the social transfer system.
Tax reform Tax modifications for the period 2000-2003 – Degressive reduction of personal income tax scales. The reform aims to lower the marginal rates of income tax between 2000 and 2003. 5 per cent. It is also planned to adjust the relief for the poorest households and modify the “family quotient”. – Reduction of the corporate income tax rate. 45 per cent in 2002 and finally to 15 per cent in 2003. 33 per cent in 2003. Other company tax measures are: lowering of the threshold for equity holdings of parent companies in their subsidiaries below which dividend payments are not taxed; lowering of the rate of the avoir fiscal tax credit that can be used by companies; reduction of declining balance depreciation coefficients.
OECD Economic Surveys 2000-2001: France by OECD