By Eric Pichet, here is the abstract:
Despite efforts to ‘liberate’ the Impôt de Solidarité sur la Fortune (‘Solidarity Wealth Tax,’ the French wealth tax) during the last legislature (2002-2007), ISF production had increased in 2006, jumping from €2.5 billion in -2002 to 2002 € 3.6 billion. The analysis of the economic effects of this ISF wealth tax suggested the following conclusions: The cost of tax collection remains low (about 1.6% of profits); Not raising the limit in line with inflation between 1998 and 2004 created a revenue windfall for the French State of €400 million in FY 2004 alone; ISF fraud mainly involving undervaluation of assets has stabilized over time at around 28% of total revenue, which equates to; (if the legal framework remains unchanged) there was a State deficit of 700 million euros in 2004; The largest flight since the establishment of the ISF wealth tax in 1988 is equal to ca. €200 billion; The ISF creates an annual deficit of 7 billion euros, or almost twice what it generates; The ISF wealth tax probably reduced GDP growth by 0.2% per year, or about 3.5 billion (about the same as it generates); In the open world, the ISF wealth tax consumes France, shifting the tax burden from wealthy taxpayers who leave the country to other taxpayers.
About Fredrik. I would describe this work as a very loose measure, however it points in the right direction.
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