Antijavre on Nostr: Oh là là! The French Senate is proposing a tax that would mandate #Bitcoin hodlers ...

Oh là là!
The French Senate is proposing a tax that would mandate #Bitcoin hodlers to pay annual taxes, regardless of whether they sell their "unproductive" assets or not. 🤣🤣🤣





Subject

This amendment aims to replace the "real estate" wealth tax (IFI) with a tax on "unproductive" wealth.

Indeed, the calculation base of the IFI, which includes real estate assets that are unused in the owner's professional activity, seems economically incoherent.

On one hand, "paper stones" and real estate investments are included in the scope of the IFI, while they constitute productive investments that contribute to growth and meet the needs of households and businesses. From this perspective, it is incorrect to consider real estate as unproductive investments.

On the other hand, the IFI excludes from its base assets that do not evidently contribute to the dynamism of the French economy. Limiting the current base of the IFI to real estate assets leads to the exemption of certain heritage elements, such as liquidities and consumer goods, which represented a significant part of the ISF base and are hard to consider "productive."

Paradoxically, an "anti-economic" strategy that consists of selling a currently rented apartment to leave the obtained sum in a current account or to buy a yacht currently allows for the avoidance of the IFI.

Through this amendment, the following would be included in the base of this reformed IFI:

Unbuilt land (e.g., buildable land) when not used for economic activity;
Liquidities and equivalent financial investments (current accounts, savings, money market funds, etc.);
Tangible movable assets (valuable items, cars, yachts, airplanes, furniture, etc.);
Digital assets (e.g., bitcoins);
Rights of literary, artistic, and industrial property when the taxpayer is not the author or inventor.
With this base, economic incentives would align with the original objective of encouraging productive investments. For example:

A person who decides to mobilize buildable land to make an investment in a rental property would be exempt from tax on that apartment, unlike the current situation under the IFI;
A taxpayer who decides to invest in a small or medium-sized enterprise (PME) would be treated more favorably for tax purposes than one who leaves savings in a current account, which is not the case under the current IFI.
Compared to the current IFI, the tax threshold would be raised to avoid taxing households that, without being considered wealthy, have become taxable due to accumulated inflation.

We remind that this amendment had already been adopted by the Senate, at the initiative of the former general rapporteur of the finance committee, Albéric de Montgolfier, during the examination of the budget bill for 2020, with a delayed application (January 1, 2021).

This amendment also provides for the replacement of the real estate wealth tax with a tax on unproductive wealth starting in 2025.

This amendment was adopted by the Senate during the examination of the budget bill (PLF) and the first rectifying budget bill (PLFR) for 2022, as well as within the PLF for 2023 and 2024.

Source:
https://www.senat.fr/amendements/2024-2025/143/Amdt_I-128.html