Mr. T. WILSONasked the Secretary of State for Foreign Affairs if he can state the rate at which the Income Tax is levied in France, and the minimum income upon which the tax is payable?
§ Lord R. CECILNo Income Tax whatever is levied in France on incomes of less than 3,000 frs.; over that sum the tax is applied at the rate of 12.50 frs. for each 400 frs. of a proportion of the total income, as follows:
676WOne one-tenth of the amount between 3,000 frs. and 8,000 frs.; on two-tenths of the amount between 8,000 frs. and 12,000 frs.; on three - tenths of the amount between 12,000 frs. and 16,000 frs.; on four-tenths of the amount between 16,000 frs. and 20,000 frs.; on five-tenths of the amount between 20,000 frs. and 40,000 frs.; on six-tenths of the amount between 40,000 frs. and 60,000 frs.; on seven-tenths of the amount between 60,000 frs. and 80,000 frs.; on eight-tenths of the amount between 80,000 frs. and 100,000 frs.; on nine-tenths of the amount between 100,000 frs. and 150,000 frs.; and on the whole amount by which 150,000 frs. is exceeded.
Thus, in the case of a person with 15,000 frs. a year, the tax would work out as follows: 3,000 frs. no tax; from 3,000 frs. to 8,000 frs., or on 5,000 frs., one-tenth is taxable— i.e.,500 frs.; from 8,000 frs. to 12,000 frs., or on 4,000 frs., two-tenths are taxable, or 800 frs.; from 12,000 frs. to 15,000 frs., or 3,000 frs., three-tenths are taxable, or 900 frs., making a taxable total of 2,200 frs., and, at the rate of 12.50 frs. per 100 frs., a total tax to be paid of 275 frs.
This is in the case of a bachelor with no dependants, but the law provides that the amount on which the tax shall not be levied shall be raised by 2,000 frs. for a wife and by 1,000 frs. for each dependant (father, mother, grandfather, grandmother, etc., without means, children, grandchildren, under twenty-one, etc.) up to five, and by 1,500 frs. for each dependant above the number of five. Thus, a married man with one child would pay no Income Tax unless his income were above 6,000 frs.; with two children, 7,000 frs.; with three children, 8,000 frs., etc.
Moreover, once the amount of the tax payable has been settled, in accordance with the Schedule given above, this amount is reduced in respect of each dependant (except the wife, who, in the case of this reduction, does not count as a dependant) by 5 per cent. for one dependant, 10 per cent. for two dependants, 20 per cent. for three dependants, 30 per cent. for four dependants, 40 per cent. for five dependants, and by 50 per cent. for six dependants or more. Thus a married man with two children and an income of 19,000 frs. would begin by deducting 4,000 frs. in respect of dependants, and the calculation would proceed as above for the bachelor, except that from the amount of the tax of 275 frs. payable he would 677W then deduct 10 per cent. for the two children, or 27.50 frs., making a total tax payable by him of 247.50 frs.
A new Income Tax law has been voted by the Chamber, and is now before the Senate. It provides that, after all deductions as above, the tax on incomes up to 5,000 frs. shall be 1.50 frs. per 100, and that 1 centime additional shall be added for every 100 frs. above that sum, such addition to be paid on the whole amount. The tax would thus be: 1.60 frs. per cent. on 6,000 frs.; 1.70 frs. per cent. on 7,000 frs.; and so on, up to 150,000 frs., on which sum tax calculated on this basis would amount to 16 per cent. On incomes over 150,000 frs. the increase will be 1 centime per 1,000 frs., until the rate of 20 per cent. is reached, on incomes of 850,000 frs. No increase is provided for incomes above this amount. The tax would consequently remain at 20 per cent. whatever the income above 650,000 frs.