France's Conseil des prélèvements obligatoires released a report on December 1 criticizing the country's wealth taxation as complex and unequal. It recommends a comprehensive overhaul, starting with taxes on inheritances and donations. The document comes amid recent controversy over property tax reforms.
The Conseil des prélèvements obligatoires (CPO), an independent body affiliated with the Cour des comptes and comprising judges, senior officials, and experts, highlights the shortcomings of France's wealth taxation. Released on Monday, December 1, the report describes the system as "complex," "unequal," a "source of economic distortions," and "ineffective" relative to public policy goals.
The CPO advocates for numerous reforms, prioritizing an overhaul of taxes on transmissions, such as inheritances and donations. This recommendation fits into a broader call for a complete reset of patrimony taxation.
The issue was recently exemplified by the property tax controversy, the oldest and most significant levy on wealth. The Ministry of Economy had quietly planned to update its obsolete calculation base, potentially raising bills for millions of owners. Amid widespread backlash, the government swiftly retreated. On November 26, Prime Minister Sébastien Lecornu announced he had instructed relevant ministers to extend the timeline, suspending any increase until "May or June" to reassess the plan.
Though technically warranted – the tax having become regressive and burdening smaller owners more heavily – such changes raise political questions about their viability.