Who are these “good” French people who benefit from the government’s tax measures?
Every year, INSEE, the National Institute of Statistics and Economic Research, publishes a social portrait of France. In the 2022 report, it highlights the impact of the social and fiscal measures of 2020 and 2021 on the standard of living of the French people and profiles the more than 3 million estimated food aid beneficiaries.
The standard of living of the French increased by an average of 1.1% per year or 280 euros per person.. INSEE says that the income for the richest half of the population is on average 420 euros, and for the most modest half, the income is on average 130 euros. The gain is greater for taxable households because they pay less tax. Actions taken in 2020 and 2021 are 90% fiscal. They have had more impact than social events.
Tax cuts (the phasing out of the housing tax and the revision of the income tax scale) have particularly benefited the French, who are ranked among the wealthiest by INSEE. The institute divides the population into two categories: on the one hand, the most modest, on the other, the richest. Each of these two categories is divided into slices, the exact term is: decile.
The government claims it is targeting the tax-paying working middle class.
The first bracket – the first decile – starts from 1,923 euros net per month and per person in the richest category. This is called the standard of living available for living after contributions and taxes are paid. We can see this in the INSEE graphs above all, from this 1900/2000 euro slice, the measures taken by the government have been the most profitable. The government claims it is targeting the tax-paying working middle class.
The reduction in income tax increased the total income of 15.3 million households to 5.4 billion euros. In 2020, the continued housing tax credit benefited middle-income households (17.2 million households) and wealthy households (6.2 million) in 2021.
In 2020 and 2021, social benefits targeted the poorest half of the population. It is in 2020 that the increase in living standards is most notable, with an average increase of 220 euros for the poorest 20% of households. But most of this was exceptional aid to mitigate the effects of the health crisis, notably an increase in the back-to-school allowance, which will not be renewed in 2021; In 2021, the exceptional aid to combat rising energy costs had less impact: a €100 “inflation” allowance, an increase in the energy check.
So over the entire two years 2020 and 2021, when we look at the decimals, the gains in living standards : EUR 110 (+1.1%) for a year from EUR 833 per month and per person. For the next two installments (1190 euros/month and 1389 euros/month) 100 euros (+0.7 and 0.6%). 140 euros (+0.7%) from 1667 euros per month. 210 euros (+1%) from 1750 euros per month. 300 euros (+1.3%) from 1,923 euros per month, 400 euros (+1.5%) from 2,222 euros per month. From €2,552/month to €490 (+1.6%), this is the strongest gain. 470 euros (+1.3%) from 3013 euros per month and 430 euros (+0.7%) from 5119 euros per month.
3.2-3.5 million who receive food aid from associations.
INSEE conducted a survey by associations in food aid distribution centers in November and December 2021 and estimated between 3.2 million and 3.5 million beneficiaries last winter. 52% are between 25-49 years old. 10% are over 65 years old. 44% are immigrants. 19% of those who use in-kind help say they have no one to trust. The third says that they sleep hungry
Marital status, housing, migration status affect the type of application for food aid. 71% of beneficiaries participate in the distribution of food packages, 28% go to social and solidarity food stores. This mainly applies to families with residences and single mothers. 12% use food distribution, mostly single men with the most dangerous profile. (does not add up to 100% as some apply for different types of food aid)