Macron’s Deficit Dilemma Depends on Sound Tax Policy
By:Fixing the deficit issue doesn’t have to be an all-or-nothing game; French citizens and policymakers should recognise that reform is more complicated than punishing the rich or vilifying the poor, Sean Bray writes.
Recent figures reveal that President Emmanuel Macron’s deficit reduction plan is behind target, meaning France must find additional revenue or face further fiscal uncertainty.
Trapped in a stalemate between raising taxes or cutting spending, France instead should consider the revenue potential of principled taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. policy design.
On 26 March, the French National Institute of Statistics and Economic Studies announced France’s 2023 budget deficit was 5.5% of GDP, well above both the government’s 4.9% target and the EU’s 3% rate.
This is a preview of our full op-ed originally published in Euronews.
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Sean Bray
Vice President of Global Tax Policy at Tax Foundation and Policy Director of Tax Foundation Europe
Sean Bray is Vice President of Global Tax Policy at Tax Foundation and Policy Director of Tax Foundation Europe, where he researches international tax issues with a focus on tax policy in Europe. Prior to joining the Tax Foundation, Sean Bray worked in the United States Senate on tech, telecom, and trade policy.