Fictitious yield
A tax expenditure’s cost is not always fully recoverable.
Tax reform · Plan de Rupture
6.11 — Review poorly targeted tax expenditures
A tax expenditure is a derogation from a reference tax system. Removing one may raise beneficiaries’ tax, so each item requires a separate assessment.
What the Plan proposes
Plan source: Recette nette — fiche par fiche. The title and stated effect are preserved from the public edition; this page adds an initial legal and operational architecture for expert review.
A tax expenditure is a derogation from a reference tax system. Removing one may raise beneficiaries’ tax, so each item requires a separate assessment.
Status: structured civic prototype requiring expert review before filing or implementation.
Current system
Tax expenditures are listed in documents attached to the draft Finance Act. Their stated cost is not necessarily the revenue recoverable from abolition.
Implementation path
- Define the reference systemExplain why a provision is treated as a derogation.
- Evaluate each itemPurpose, beneficiaries, cost, efficiency, distribution and indirect effects.
- Classify decisionsKeep, reform, cap, sunset or abolish.
- Provide transitionAvoid abrupt changes to committed investment.
- Publish an annual registerForecast cost, actual cost and outcome.
Key risks
Instability
Frequent changes reduce confidence.
Social purpose
Some relief supports disability or fragile sectors.
Lobbying
The method should be public and uniform.
Indicators to publish
| Indicator | Before | After | Purpose |
|---|---|---|---|
| Scope and population | Baseline | Annual value | Prevent perimeter changes |
| Budget effect | Estimate | Cash collected or spent | Separate promise from execution |
| Transition cost | Disclosed | Multi-year tracking | Calculate net effect |
| Appeals and errors | Initial rate | Corrected rate | Protect rights |