DOCSLIB.ORG

Major Future Economic Challenges

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Major Future Economic Challenges June 2021 MAJOR FUTURE ECONOMIC CHALLENGES International Commission chaired by Olivier Blanchard and Jean Tirole APPENDICES MAJOR FUTURE ECONOMIC CHALLENGES APPENDICES Rapporteurs Olivier Blanchard et Jean Tirole Auteurs Christian Gollier, Mar Reguant Dani Rodrik, Stefanie Stantcheva Axel Börsch-Supan, Claudia Diehl, Carol Propper JUNE 2021 TABLE OF CONTENTS In early 2020, the French President Emmanuel Macron asked Olivier Blanchard and Jean Tirole to set up a commission of French and foreign experts to analyse three major challenges – climate, inequalities and ageing. Their report, Major Future Economic Challenges, was published in June 2021 and is available online. The Appendices gathered here complete this report, namely the two sections dedicated to economic inequality and insecurity and to the demographic change. APPENDICES TO CHAPTER TWO – ECONOMIC INEQUALITY AND INSECURITY: POLICIES FOR AN INCLUSIVE ECONOMY.................. 7 Appendix 1 – Good Jobs and Economic Security: Summary of French Attitudes ..... 9 Views on the Current Situation .......................................................................................................................... 10 Views on Equality of Opportunity ...................................................................................................................... 13 Expectations of Economic Situation in the Short, Medium and Long Run ...................................... 15 Views of “Good Jobs” and Attitudes Towards Work ................................................................................. 17 Trust in Government and Institutions .............................................................................................................. 22 Views on Fairness and Redistribution............................................................................................................. 23 Understanding of Policies .................................................................................................................................... 27 Views on Current Policies .................................................................................................................................... 28 Views on Ideal Policies ......................................................................................................................................... 30 Views on the Role of Government in Ensuring Economic Security .................................................... 31 Views on Social Dialogue ..................................................................................................................................... 32 Appendix 2 – Inheritance Taxes ......................................................................................................................35 Global Wealth Has Increased but Has Become More Unequally Distributed .......................... 35 Inheritance Taxes Exist in Many Developed Countries, Although Their Use as a Redistributive Tool Has Declined ..................................................................................... 38 In the French Context, Inheritance Taxes Are Both Unpopular and Misunderstood ............... 42 Challenges Related to a Modern Inheritance Tax .................................................................... 45 An Example of a Beneficiary-Based Lifetime Tax: the Irish Case ........................................... 48 INTERNATIONAL COMMISSION Olivier Blanchard-Jean Tirole 3 JUNE 2021 Major Future Economic Challenges Appendix 3 – Capital Taxes ............................................................................................................................... 51 Taxation of Capital vs. Labor in an International Context.................................................................. 51 Automatic Exchanges of Information Has Contributed to Securing a New Base for Taxing Capital ................................................................................................................................................... 68 Tax Expenditures (niches fiscales) ............................................................................................................... 73 Appendix 4 – Corporate Taxes (BEPS) ..................................................................................................... 85 BEPS 1.0 .................................................................................................................................................................... 85 The New Initiatives to Fight Tax Avoidance by MNEs: GILTI (US) and BEPS 2.0 (OECD) ... 92 Appendix 5 – Formal Education ................................................................................................................... 105 Students from France Have an Academic Performance Slightly Above International Average .................................................................................................................................................................... 105 However, the French System Remains Very Unequal .................................................................... 106 Pre-elementary education is a determinant of both overall academic performance and inequalities .................................................................................................................................................... 108 Teacher Status and Working Conditions in France ........................................................................... 110 Vocational Tracks (High School and Higher Education) ................................................................. 112 Transition to Higher Education ..................................................................................................................... 112 The Importance of Engaging with Employers ....................................................................................... 113 Review of Relevant International Policies about Education .......................................................... 114 Appendix 6 – Labor Market Regulation .................................................................................................. 117 Minimum Wage .................................................................................................................................................... 117 Collective Bargaining ........................................................................................................................................ 121 Employment Protection .................................................................................................................................... 123 Temporary Work .................................................................................................................................................. 125 Appendix 7 – Social Protection System ................................................................................................. 129 Unemployment ..................................................................................................................................................... 130 In-Work Benefit .................................................................................................................................................... 134 Minimum Income Scheme .............................................................................................................................. 135 Housing Benefits ................................................................................................................................................. 136 Appendix 8 – Deploying the European Green Deal Towards a Good Jobs Agenda ................................................................................................................................................................... 141 Background – European Green Deal and the Just Transition Mechanism ........................... 141 Following an Old Welfare State Model vs. a Good Jobs Agenda .............................................. 142 Good Jobs Potential of Green Technologies ........................................................................................ 142 Energy Production .............................................................................................................................................. 144 Circular Economy................................................................................................................................................ 146 Agriculture............................................................................................................................................................... 146 Transportation ...................................................................................................................................................... 147 Energy Efficiency ................................................................................................................................................ 147 Economy-Wide Effects ..................................................................................................................................... 148 Skill Requirements ............................................................................................................................................. 149 More Jobs vs. Good Jobs ............................................................................................................................... 149 Deploying the European Green Deal and Just Transition
Load more

Recommended publications
  • What's Wrong with a Federal Inheritance Tax? Wendy G
    University of Baltimore Law ScholarWorks@University of Baltimore School of Law All Faculty Scholarship Faculty Scholarship Spring 2014 What's Wrong with a Federal Inheritance Tax? Wendy G. Gerzog University of Baltimore School of Law, [email protected] Follow this and additional works at: http://scholarworks.law.ubalt.edu/all_fac Part of the Estates and Trusts Commons, Taxation-Federal Commons, Taxation-Federal Estate and Gift ommonC s, and the Tax Law Commons Recommended Citation What's Wrong with a Federal Inheritance Tax?, 49 Real Prop. Tr. & Est. L.J. 163 (2014-2015) This Article is brought to you for free and open access by the Faculty Scholarship at ScholarWorks@University of Baltimore School of Law. It has been accepted for inclusion in All Faculty Scholarship by an authorized administrator of ScholarWorks@University of Baltimore School of Law. For more information, please contact [email protected]. WHAT'S WRONG WITH A FEDERAL INHERITANCE TAX? Wendy C. Gerzog* Synopsis: Scholars have proposed a federal inheritance tax as an alternative to the current federal transfer taxes, but that proposal is seriously flawed. In any inheritance tax model, scholars should expect to see significantly decreased compliance rates and increased administrative costs because, by focusing on the transferees instead of on the transferor, an inheritance tax would multiply the number oftaxpayers subject to the tax. This Article reviews common characteristics ofexisting inheritance tax systems in the United States and internationally-particularly in Europe. In addition, the Article analyzes the novel Comprehensive Inheritance Tax (CIT) proposal, which combines some elements of existing inheritance tax systems with some features ofthe current transfer tax system and delivers the CIT through the federal income tax system.
    [Show full text]
  • 3 Inheritance Taxation
    LWS Working Paper Series No. 35 Inheritance Taxation in Comparative Perspective Manuel Schechtl June 2021 Luxembourg Income Study (LIS), asbl Inheritance Taxation in Comparative Perspective Manuel Schechtl* May 25, 2021 Abstract The role of inheritances for wealth inequality has been frequently addressed. However, until recently, comparative data has been scarce. This paper compiles inheritance tax information from EY Worldwide Estate and Inheritance Tax Guide and combines it with microdata from the Luxembourg Wealth Study. The results indicate substantial differences in the tax base and the distributional potential of inheritance taxation across countries. Keywords: taxes, wealth, inheritance, inheritance tax *Humboldt Universita¨t zu Berlin; Email: [email protected] 1 1 Introduction The relevance of inheritances for the wealth distribution remains a widely debated topic in the social sciences. Using different comparative data sources, previous studies highlighted the positive association between inheritances received and the wealth rank (Fessler and Schu¨rz 2018) or household net worth (Semyonov and Lewin-Epstein 2013). Recent research highlighted the contribution of transferred wealth to overall wealth inequality in this very journal (Nolan et al. 2021). These studies have generated important insights into the importance of inherited wealth beyond national case studies (Black et al. 2020) or economic models of estate taxation (De Nardi and Yang 2016). However, institutional characteristics, such as taxes on inheritances, are seldomly scrutinised. As a notable exemption, Semyonov and Lewin-Epstein examine the association of household net worth and the inheritance tax rate (2013). Due to the lack of detailed comparative data on the design of inheritance taxation, they include inheritance taxes measured as top marginal tax rate in their analysis.
    [Show full text]
  • Press Release
    PRESS RELEASE 23 July 2019 The Mauritius Leaks have once again revealed the devastating impact of tax avoidance. ICRICT calls for multilateral accord to overhaul the international tax system, the end of tax havens, the adoption of a minimum global tax and the creation of a Global Asset Registry The Mauritius Leaks have once again highlighted how rich and powerful corporations and the super-rich skirt paying taxes, whether legally or illegally. The schemes are the same, as already revealed by anonymous sources through the International Consortium of Investigative Journalists the Panama Papers, Paradise Papers, Malta Files, Luxleaks, SwissLeaks, among others. This is the latest in a series of leak that demonstrate how broken the current international tax system is. Why Mauritius? Mauritius built its position as an offshore financial centre on being a hub for tax avoidance. First it enabled multinationals to avoid capital gains tax in India. Then it created schemes to offer multinationals a low rate (3%) on income they could attribute to their subsidiaries in Mauritius supposedly for providing services to related entities in other countries, especially in Africa, with which it negotiated tax treaties. Mauritius has an extensive set of tax treaties with African countries, ensuring that investment made in African countries (profits/capital gains on investments) can be routed via Mauritius to rich countries with no/little taxes paid. No capital gains tax, no inheritance tax, wealth or gift tax, no Controlled Foreign Companies legislation, no transfer pricing rules or thin capitalization rules, no withholding tax on dividends, interest and royalty payments, you name Mauritius doesn’t have it, no wonder it has been used so extensively as a tax haven hub to take money out of Africa and India.
    [Show full text]
  • 2019 Annual Report Annual 2019
    a force for good. 2019 ANNUAL REPORT ANNUAL 2019 1, cours Ferdinand de Lesseps 92851 Rueil Malmaison Cedex – France Tel.: +33 1 47 16 35 00 Fax: +33 1 47 51 91 02 www.vinci.com VINCI.Group 2019 ANNUAL REPORT VINCI @VINCI CONTENTS 1 P r o l e 2 Album 10 Interview with the Chairman and CEO 12 Corporate governance 14 Direction and strategy 18 Stock market and shareholder base 22 Sustainable development 32 CONCESSIONS 34 VINCI Autoroutes 48 VINCI Airports 62 Other concessions 64 – VINCI Highways 68 – VINCI Railways 70 – VINCI Stadium 72 CONTRACTING 74 VINCI Energies 88 Eurovia 102 VINCI Construction 118 VINCI Immobilier 121 GENERAL & FINANCIAL ELEMENTS 122 Report of the Board of Directors 270 Report of the Lead Director and the Vice-Chairman of the Board of Directors 272 Consolidated nancial statements This universal registration document was filed on 2 March 2020 with the Autorité des Marchés Financiers (AMF, the French securities regulator), as competent authority 349 Parent company nancial statements under Regulation (EU) 2017/1129, without prior approval pursuant to Article 9 of the 367 Special report of the Statutory Auditors on said regulation. The universal registration document may be used for the purposes of an offer to the regulated agreements public of securities or the admission of securities to trading on a regulated market if accompanied by a prospectus or securities note as well as a summary of all 368 Persons responsible for the universal registration document amendments, if any, made to the universal registration document. The set of documents thus formed is approved by the AMF in accordance with Regulation (EU) 2017/1129.
    [Show full text]
  • Worldwide Estate and Inheritance Tax Guide
    Worldwide Estate and Inheritance Tax Guide 2021 Preface he Worldwide Estate and Inheritance trusts and foundations, settlements, Tax Guide 2021 (WEITG) is succession, statutory and forced heirship, published by the EY Private Client matrimonial regimes, testamentary Services network, which comprises documents and intestacy rules, and estate Tprofessionals from EY member tax treaty partners. The “Inheritance and firms. gift taxes at a glance” table on page 490 The 2021 edition summarizes the gift, highlights inheritance and gift taxes in all estate and inheritance tax systems 44 jurisdictions and territories. and describes wealth transfer planning For the reader’s reference, the names and considerations in 44 jurisdictions and symbols of the foreign currencies that are territories. It is relevant to the owners of mentioned in the guide are listed at the end family businesses and private companies, of the publication. managers of private capital enterprises, This publication should not be regarded executives of multinational companies and as offering a complete explanation of the other entrepreneurial and internationally tax matters referred to and is subject to mobile high-net-worth individuals. changes in the law and other applicable The content is based on information current rules. Local publications of a more detailed as of February 2021, unless otherwise nature are frequently available. Readers indicated in the text of the chapter. are advised to consult their local EY professionals for further information. Tax information The WEITG is published alongside three The chapters in the WEITG provide companion guides on broad-based taxes: information on the taxation of the the Worldwide Corporate Tax Guide, the accumulation and transfer of wealth (e.g., Worldwide Personal Tax and Immigration by gift, trust, bequest or inheritance) in Guide and the Worldwide VAT, GST and each jurisdiction, including sections on Sales Tax Guide.
    [Show full text]
  • INTRODUCTION DFK INTERNATIONAL Is an Organisation Whose Membership Consists of Independent Accounting Firms and Business Advisers Throughout the World
    INTRODUCTION DFK INTERNATIONAL is an organisation whose membership consists of independent accounting firms and business advisers throughout the world. It is committed to meeting the needs of businesses and individuals with interests in more than one country. DFK INTERNATIONAL Member Firms provide international tax and accounting services and answers to questions on these subjects. The WORLDWIDE TAX OVERVIEW gives brief details on the taxation régimes in many nations of the world. The Member Firms of DFK INTERNATIONAL can provide additional information concerning taxation legislation in these and other territories upon request. The WORLDWIDE TAX OVERVIEW is published without responsibility on behalf of DFK INTERNATIONAL, its Directors and its Member Firms for loss occasioned by any person acting or refraining from action as a result of any information contained herein. Tax laws change frequently worldwide and some of the information contained herein may be impacted by treaties. You are advised to consult with your local DFK INTERNATIONAL Member or other tax adviser in connection with any data contained in this Overview. © DFK International 2017 Country Corporate Rates Individual Rates VAT Rates Types of Taxes Taxation of Non-Residents Depreciation Miscellaneous Argentina 35% 9%-35% 10.5%-21% Income, VAT, payroll, excise. Tax imposed on income Generally straight-line based Provinces may levy gross 15% on capital gains Tax on assets for companies from resources and activities on probable useful life receipts taxes. Branch profits Fiscal year end: derived from sales of and individuals within Argentina. Withholding tax on foreign company’s 31.12.2017 shares tax between 10%-35% on permanent establishment interests, rents, dividends is 35%.
    [Show full text]
  • U.S.-France Estate Tax Treaty
    U.S.-FRANCE ESTATE TAX TREATY Convention between the government of the United States of America and the government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on estates, inheritances, and gifts signed at Washington on November 24, 1978, amended by the Protocol signed at Washington on December 8, 2004. The President of the United States of America and the President of the French Republic, desiring to conclude a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on estates, inheritances, and gifts, have appointed for that purpose as their respective plenipotentiaries: The President of the United States of America: The Honorable George S. Vest, Assistant Secretary of State for European Affairs, The President of the French Republic: His Excellency Francois de Laboulaye, Ambassador of France, who having communicated to each other their full powers, found in good and due form, have agreed upon the following provisions. Article 1 Estates and Gifts Covered (1) This Convention shall apply to estates of decedents whose domicile at death was in France and to estates of decedents which are subject to the taxing jurisdiction of the United States by reason of the decedent's domicile therein or citizenship thereof at death. (2) This Convention shall also apply to gifts of donors whose domicile at the time of making a gift was in France, and to gifts which are subject to the taxing jurisdiction of the United States by reason of the donor's domicile therein or citizenship thereof at the time of making of a gift.
    [Show full text]
  • A Guide to Kentucky Inheritance and Estate Taxes
    A Guide to Kentucky Inheritance and Estate Taxes GENERAL INFORMATION Kentucky Department of Revenue The purpose of this booklet is to help achieve the mission of the Kentucky Department of Revenue by offering general information concerning the Kentucky inheritance and estate tax. Kentucky Department of Revenue Mission Statement As part of the Finance and Administration Cabinet, the mission of the Kentucky Department of Revenue is to administer tax laws, collect revenue, and provide services in a fair, courteous, and efficient manner for the benefit of the Commonwealth and its citizens. * * * * * * * * * * * * * The Kentucky Department of Revenue does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, sexual orientation, gender identity, veteran status, genetic information or ancestry in employment or the provision of services. If you have a question concerning any information contained in this booklet, or if you have any questions pertaining to a technical issue, please contact the Financial Tax Section, Kentucky Department of Revenue, Station 61, 501 High Street, Frankfort, Kentucky 40601-2103 or (502) 564-4810. INTRODUCTION Kentucky has two death taxes. Inheritance Tax The Kentucky inheritance tax is a tax on a beneficiary’s right to receive property from a deceased person. The amount of the inheritance tax depends on the relationship of the beneficiary to the deceased person and the value of the property. Most of the time, the closer the relationship the greater the exemption and the smaller the tax rate. All property belonging to a resident of Kentucky is subject to the tax except for real estate located in another state.
    [Show full text]
  • Taxation and Investment in Denmark 2015 Reach, Relevance and Reliability
    Taxation and Investment in Denmark 2015 Reach, relevance and reliability A publication of Deloitte Touche Tohmatsu Limited Contents 1.0 Investment climate 1.1 Business environment 1.2 Currency 1.3 Banking and financing 1.4 Foreign investment 1.5 Tax incentives 1.6 Exchange controls 2.0 Setting up a business 2.1 Principal forms of business entity 2.2 Regulation of business 2.3 Accounting, filing and auditing filing requirements 3.0 Business taxation 3.1 Overview 3.2 Residence 3.3 Taxable income and rates 3.4 Capital gains taxation 3.5 Double taxation relief 3.6 Anti-avoidance rules 3.7 Administration 3.8 Other taxes on business 4.0 Withholding taxes 4.1 Dividends 4.2 Interest 4.3 Royalties 4.4 Branch remittance tax 4.5 Wage tax/social security contributions 5.0 Indirect taxes 5.1 Value added tax 5.2 Capital tax 5.3 Real estate tax 5.4 Transfer tax 5.5 Stamp duty 5.6 Customs and excise duties 5.7 Environmental taxes 5.8 Other taxes 6.0 Taxes on individuals 6.1 Residence 6.2 Taxable income and rates 6.3 Inheritance and gift tax 6.4 Net wealth tax 6.5 Property tax 6.6 Social security contributions 6.7 Other taxes 6.8 Compliance 7.0 Labor environment 7.1 Employee rights and remuneration 7.2 Wages and benefits 7.3 Termination of employment 7.4 Labor-management relations 7.5 Employment of foreigners 8.0 Deloitte International Tax Source 9.0 Office locations Denmark Taxation and Investment 2015 1.0 Investment climate 1.1 Business environment Denmark is a parliamentary democracy.
    [Show full text]
  • IAC Ch 86, P.1 701—86.9(450) Market Value in the Ordinary Course Of
    IAC Ch 86, p.1 701—86.9(450) Market value in the ordinary course of trade. Fair market value of real or personal property is established by agreement or the appraisal and appeal procedures set forth in Iowa Code section 450.37 and subrules 86.9(1) and 86.9(2). If the value is established by agreement, the agreement may be to accept the values of such property as submitted on the Iowa inheritance tax return, to accept a negotiated value or to accept the values as finally determined for federal estate tax purposes. Values submitted on an inheritance tax return constitute an offer regarding the value of the property by the estate. An inheritance tax clearance that is issued based upon property values submitted on an inheritance tax return constitutes an acceptance of those values on that return. An agreement to accept negotiated values or accept values as finally determined for federal estate tax purposes must be an agreement between the department of revenue, the personal representative, and the persons who have an interest in the property. If an agreement cannot be reached regarding the valuation of real property, then the department may request, within 30 days after the return is filed, an appraisal pursuant to Iowa Code sections 450.37 and 450.27 and subrule 86.9(2). Effective for estates with decedents dying on or after July 1, 2004, if an agreement cannot be reached regarding the valuation of real property, then the department may request, within 60 days after the return is filed with the department, an appraisal pursuant to Iowa Code sections 450.37 and 450.27 and subrule 86.9(2).
    [Show full text]
  • Inheritance Tax – an Equitable Tax No Longer: Time for Abolition?
    CORE Metadata, citation and similar papers at core.ac.uk Provided by e-Prints Soton Legal Studies, Vol. 27 No. 4, December 2007, pp. 678–708 DOI: 10.1111/j.1748-121X.2007.00065.x Inheritance tax – an equitable tax no longer: time for abolition? Natalie Lee* Professor of Law, University of Southampton Statistics from HM Revenue & Customs predict that receipts from inheritance tax will amount to some £3.56 billion in the tax year 2006/07. This compares to £1.68 billion in 1997/98. This paper explores the reason for the large increase in inheritance tax revenues and, in the light of those findings, together with a consideration of the recent public reaction to the changes to the inheritance taxation of trusts announced in the Budget 2006 and incorporated in the Finance Act 2006, argues that, whereas the justification for a tax on the value of property in a person’s estate on death (or within a certain number of years before death) was rooted in equity, equity now forms the argument for its abolition or, at least, its substantial reform. INTRODUCTION Despite a promise by the last Conservative Government that it would abolish inher- itance tax when it could afford to do so,1 there has been little suggestion from either the current opposition or the government that this is likely to happen.2 The unwill- ingness of any of the political parties to consider the abolition of inheritance tax (IHT), despite its demise in other jurisdictions, most notably Canada, Australia and, more recently, Sweden,3 is probably based on the notion that some form of inheritance * My thanks to the helpful comments made by Professors John Prebble, University of Wellington, New Zealand and John Tiley, Queens’ College, Cambridge and Timothy Vollans, University of Coventry, during the presentation of an earlier form of this paper at the conference of the Society of Legal Scholars, Keele, September 2006, and to the anonymous referees for further comments.
    [Show full text]
  • Stranded to Be? Diesel Ban and Used Car Markets
    Stranded to be? Diesel ban and used car markets Quentin Hoarau1,2 and Edouard Civel2,3,4 1 RITM { Universit´eParis-Sud 2Climate Economics Chair { Universit´eParis-Dauphine, PSL Research University 3Economix - Universit´eParis-Nanterre 4LIX { Ecole Polytechnique Preliminary draft Abstract After promoting their development for two decades, European governments are pulling back their support to diesel cars. While those engines were supposed to be cleaner than gasoline ones, by consuming less and emitting less CO2, their emissions of local air pollutants are much higher. In response to increasing awareness on air quality, Low Emissions Zones (LEZs) are gradually implemented by some cities, announcing a progressive ban on diesel cars which could also turn those vehicles into stranded assets for households. This is a thorny issue in France where 50% of vehicles are diesel-fueled. Investigating nearly a million of used cars ads across France, we find that diesel vehicle sellers located within ongoing and planned LEZs anticipate this change of regulation and lower their asking price for those cars. This effect is robust to the introduction of an air pollution indicator for cities. JEL Classification: Q52, Q53, R48 Keywords: Low Emission Zones, Air pollution. 1 1 Introduction The Diesel-gate scandal revealed the need for stronger environmental regulations in the road transport sector. It contributed to accelerate announcements on the ban of petrol - particularly diesel - cars that have been made by European countries and cities over the last few years (Pl¨otzet al., 2019). Indeed road transport is major producer of environmental externalities with greenhouse gases1 and air pollutants2.
    [Show full text]