Challenges of Proposed Tax Solutions

To address its economic challenges, France's government is exploring tax increases and spending cuts, with a focus on raising around 20 billion euros through new temporary taxes targeting high earners and large corporations. However, with existing high tax rates nearing 45%, further increases may prompt affluent citizens to relocate to countries with lower taxes, exacerbating the flight of wealth. Additionally, raising taxes on the aviation sector could hinder tourism, a vital part of the French economy. An alternative strategy could involve closing tax loopholes, such as those benefiting short-term rental services like Airbnb, which could level the playing field and enhance revenue without adding more tax burdens.