Taxes

SOLIDARITY TAX ON WEALTH (ISF)

Nowadays we are living in a time of crisis, a fight in which all states seek solution to address this horrible situation. Every day we see in the media how thisfinancial crisis destroy jobs, businesses, cut the salaries of officials ... All these consequences of the crisis generated a bad economic situation in the country reaching in some cases a majorsocial upheaval , in which governments have a crucial role and are obliged to intervene and implement measures. All these measures cannot be done if the government does not have liquidity to help thevarious social agents involved in the economy. Therefore, governments have to be financed somehow, and one of the measures is through tax collection.
Through the collection of taxes is how a series ofFrench billionaires, (inspired by the call of U.S. billionaire Warren Buffet) have concluded that their aid is vital to help your country and airy out this economic storm. This is how it became the ideaof creating a tax on large fortunes, the Solidarity Tax on Wealth (ISF), and also other government tries to adapt to their countries. This tax has been controversial because some of the taxpayerssectors affected refuse to pay it.
The Solidarity Tax on Wealth (ISF) is a 3% tax rate on those revenues which exceed 250,000 euros per year and a rate of 4% over those that exceed half a million eurosa year.
Like any measure, this resolution has advantages and disadvantages which will be tackled below:
Advantages:
There are four main advantages in applying the aforementioned tax:
-IncreasedState revenue, as for the case of France where 2,600 million euro has been collected.
-Increased justice in the tax system by forcing the law of large fortunes to help the needy.
- Stimulatingeconomic growth in a country helping taxpayers with less disposable income and give an incentive to consumption.
-Favorable social impacts because of the reduction of economic divergence between the...