a majority of French people benefit more from redistribution than participate in it

2023-09-20 06:06:43

Barthélémy Philippe / Photo credits: PHILIPPE HUGUEN / AFP
modified to

8:20 a.m., September 20, 2023

Income tax, taxes of all kinds, social security contributions… More and more French people feel like they are paying too much tax. However, in addition to reducing inequalities between the richest and the poorest, the majority of French people find themselves beneficiaries of the redistribution system, underlines a new study from INSEE.

The French are drowning in taxes. This is what emerges from a recent Ifop survey, in which two thirds of respondents believe they pay too much taxes and levies. And yet, even among these dissatisfied people, many benefit from the generous French redistributive system, assures a new study from INSEE (National Institute of Statistics and Economic Studies).

Inequalities are also largely reduced

Because taxes and contributions on wages finance social benefits, including pensions, but also public services such as education and health. And nearly 6 out of 10 French people benefit more from this redistribution than they contribute to it, reveals the organization.

Their standard of living improves significantly and inequalities are also greatly reduced. Before redistribution, the wealthiest 10% of households have an income 18 times higher than the poorest, while following redistribution, the wealth gap is divided by six. The incomes of the richest are then three times higher than those of the poorest.

Are the oldest the most advantaged?

“In fact, we are one of the most egalitarian countries in the world thanks to this redistribution system,” explains Anne-Sophie Alsif, chief economist at the strategy consulting firm BDO, at the microphone of Europe 1. When we look at our European partners, Germany and Italy, inequalities are much greater, so the system is less redistributive. And for the United States, following redistribution, we can stay with income gaps of 1 to 30. It’s a much more unequal system.”

And among those who benefit the most from this redistributive system are those over 60. In question, the payment of retirement pensions and health expenses. But the study also shows that redistribution particularly benefits single women, with or without children.

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