Hovering in the air for days over the heads of Italians: the restoration of ICI for the first house. And perhaps also the introduction of a property tax, it is not clear what type. Taboo until Berlusconi's withdrawal, with Mario Monti the two options (especially the first) have re-emerged. And they would be being studied by the new government. Who, to clear his head, could look to France, where both taxes have practically always been active. Without many scandals. No controversy of any kind.
As for the ICI, never, ever in France has there been a plan to eliminate it for first homes. No one has ever remotely thought of such an option, even in a country where housing is an even greater problem than in Italy. And where a reduction in taxes could improve access to property. In France, in fact, only 58% of families own the accommodation in which they live against 74% in Italy. Beyond the Alps, in reality, there are two taxes: the taxe foncière, paid by the owner, and the taxe d'habitation, which is due to whoever occupies the accommodation (it also includes the waste tax and the TV license). These taxes are collected by the municipalities. The tax base is represented by the cadastral value of the property. The rates vary from city to city, but have tended to increase in recent years, as the central state has cut back on transfers to local authorities. A concrete example: for a 75 square meter apartment in Paris, in the 19th arrondissement, by far the one with the lowest real estate prices, the taxe foncière is 650 euros per year.
We come to the assets. His name is Isf, l'Impot de solidarité sur la fortune. It was introduced in 1982, immediately after the election of the socialist François Mitterrand in the presidential elections the year before. When Gaullist Jacques Chirac became premier in 1987, he suppressed it. But the socialists, who returned to power two years later, immediately resurrected it. And since then, right or left at the top of the state, the ISF has never been touched again. Only with the arrival of Sarkozy in 2007 was the question addressed. The new president immediately revealed the possibility of eliminating the assets. To begin with, one of the first measures he adopted in 2007 was the introduction of a cap on the global tax levy of 50% (the so-called tax shield), which mainly benefited the richest in the country.
Immediately afterwards Sarkozy began his battle to eliminate the Isf as well. The debate (highly polemical) continued until the beginning of this year. But resistance to the elimination of the tax has been very strong, even within the right. All the more so since the health of the state's finances has in the meantime deteriorated more and more (public deficit at 5,7% of GDP, forecast for the whole of 2011). In the end, last spring, a reform of this type was launched (which will be fully applied from 2012): on the one hand, the tax shield was abolished (apart from the lowest incomes), on the other, it «reduced » the assets. Up to now it applied starting from a minimum taxable asset of 800 thousand euros: now, however, it has passed to a minimum of 1,3 million. The rates have also been reduced, from 0,5 to 0,25% for the 1,3-3 million range and from 1,8 to 0,5% for those with over 3 million.
It's no small relief. In 2010, ISF revenues had reached a record level of €4,46 billion. With the difference however, the figure should be significantly reduced, starting from 2012, perhaps even halved. But the difference should be more than compensated by the elimination of the tax shelter. Not only that: a maneuver launched by the Fillon government at the end of August, in the midst of the latest financial emergency, introduced an additional tax for the wealthiest. It is a sort of patrimonial encore. It translates into a rate of 3% on annual income (including income from financial investments and real estate capital gains) of between 250 and 500 euros per year. Beyond this threshold it passes to 4%. This last tax is "provisional" until the state budget recovers its balance. But given the current situation, a lot of water will pass under the bridge before we get there. At the end of 2011, the public deficit in France will still represent 5,7% of GDP. And the draw is expected, hopefully, only in 2016.
Precisely the financial constraints of the French state have also led to a cut in public contributions to directly or indirectly support those who want to buy a house or rent it at "humane" prices. In the latest penalty plan, presented by the Government at the beginning of November, three measures have been taken that affect the real estate market: the zero-interest loan (Ptz) for the purchase of a first home has been abolished, at least for the market second-hand (remains only for new housing); the so-called Scellier device was put to an end, whereby tax relief was granted to those who bought real estate and then rented it out (but at a controlled rent); VAT on renovations went from 5,5 to 7 percent. Meanwhile, the costs of staying in the capital are skyrocketing, from all points of view. Rents have increased by 50% in the last ten years, much more than salaries (finding 75 square meters in the city to rent under 2 euros a month is really tough). As for purchase prices, in 2010 alone they grew by 21,3% over the previous year (according to the association of notaries). The average price at the end of 2010 was now around 8.350 euros per square metre. Despite all this, the ICI on the first house remains untouchable. And no one argues.
