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The economic gap between the French is expanding when wealth focuses in the hands of a small minority. At a time when the debate on tax justice is raging, a study of the General Directorate for Public Financing (DGFIP) does not give a portrait of 0.1 % of the richest French people, which reveals a fracture increasingly marked by the rest of the population. Who is these 74,500 households that make up this financial elite? What is their income, the structure of their assets (real estate) and how has their situation developed in recent decades?
Colossal wealth and extraordinary income
For two decades, the concentration of wealth has intensified, which gave birth to a financial elite whose profile is radically distinguished from the rest of the French. Entering this closed circle of very high heritage (THP) requires a possession of at least EUR 2.7 million in assets (together real estate and financial investment). In 2016, the average heritage of these houses reached 10.2 million euros, or almost doubled 5.3 million recorded in 2003. Unlike most French people who prefer real estate, 79 % of the richest wealth is based on moving assets, especially financial investment and financial investments and shares in companies. Strategic orientation that allowed them to earn money on the development of financial markets and significantly increase their assets.
Very high income (Thr) is the other half of this elite. To be part of the club, it is necessary to justify the annual income of more than 463,000 euros. However, the average of this group is 1.03 million euros per year, which is more than 30 times higher than the average income of other Frenchmen. Their peculiarity lies in the diversity of their revenue sources: high salaries, dividends, business profits, real estate revenue and pension pension. Unlike the rest of the population, of which 90 % come exclusively from wages and pensions, thr optimizes their financial flows multiplication channel remuneration.
Concentration of wealth formed by tax and age
Fiscal and demographic decisions play a key role in structuring this elite. This is not homogeneous, it is divided into different categories, with different consequences for the development of wealth distribution. Since 2003, THR sales have increased by 119 %, while other household incomes have increased by only 46 %in the same period. Several factors explain this gap. On the one hand, the introduction of a single flat fee (equal tax) in 2018 favored profits from financial investment by limiting their taxation to 30 %, significantly to a progressive tax scale. On the other hand, multiple adjustments to the solidarity tax for wealth (ISF), replaced by the property of wealth (IFI) in 2017, indirectly contributed to this accumulation by excluding securities of the taxable basis.
The typical thP and ThP profile is clearly different from the rest of the French population. 76 % of very high heritage is over 61 years old, which reflects wealth, which often results from the accumulation process over several decades, even a reference. On the contrary, only 32 % of very high income exceeds this age, which shows that high income in the short term does not always guarantee considerable heritage. In addition, 69 % of highly rich houses are married, against 42 % in the rest of the population. This rate even reaches 74 % for Thr, reflecting more marital stability between great wealth.
The rapid development of the wealth of this ultra-it-as the old minority causes the main issues concerning tax capital and the division of wealth in France. If this financial elite has been able to use tax reforms and financial investments, its increased exposure to economic fluctuations may also be a factor in vulnerability. The 2009 and 2012 crisis led to a decline of 8.5 % and 6.4 % of their income, as evidenced that their prosperity is partly based on cyclic dynamics.
While the question of more progressive tax reforms occurs, they are against two visions. Should we further store these 75,000 ultra -rich households to reduce unevenness, or to support their investment dynamics to maintain economic competitiveness? Extreme concentrations of wealth at the peak cheat on the debate, which will continue to animate political and economic discussions in the coming years.
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Graduate of Science after Toulouse and holder of Blockchain Consultant Certification, published by Alyrou, joined the adventure of Cointtribuni. The general public about this constantly evolving ecosystem. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
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