From Olivier Perrin – The Brave Little Economist (Switzerland) –
From 8 November, the government will:
- Arbitrarily setting yields life insurance , like Livret A and instead of companies and insurance;
- Indefinitely freeze withdrawals from life insurance – that is, that you can not enjoy your savings even if you need them. What amounts to the theft.
This is a range of measures that can of course be applied to a struggling insurance company but also for all insurance companies :
This is a nationalization of savings that dare not speak its name.
Life insurance is essentially a savings product that would not have a particular interest if it was largely untaxed.
It is this tax exemption which allows life insurance to provide the best yield / safety for investors, the smaller the more fortunate.
Thus the life insurance contracts now account for 40% of savings in France – 1500 billion € in value.
This tax incentive is quite sure not a single selfless generosity of the state:
It allowed the state to capture much of this windfall of € 1 500 billion to finance its debt cheaply, 80% of life insurance assets are invested in sovereign debt – the so called “funds euro “.
Unfortunately, this has also created a dangerous distortion .
This strong incentive to invest your money in a life insurance euro fund private private economy an important source of funding – particularly SMEs who suffer so since 2008.
But that’s not all. That the State and the Governor of the Bank of France, Mr. Villleroy of Galhau, suddenly found that the tax giveaways of life insurance participate in a “savings glut” .
This is a very important point, it marks the moment when the state completely ceases to represent you to follow his own interests:
As the state needs your savings to finance its deficit, life insurance is encouraged.
Now that he is to sustainably finance from the European Central Bank -and that although this it is specifically prohibited, but this will be a next letter- he prefers to redirect your savings … consumption .
That makes sense: the consumer is VAT, of corporation tax if it is a French product … it is above inflation that can artificially reduce the burden of debt and you impoverish at the same time so painless first.
But from your point of view: this is different.
If you already have a decent, what you move, heat you, feed you and clothe you … Why should you spend more?
Yes, you are right to be cautious.
Yes, it is probably wise to avoid unnecessary costs today to provide for those perhaps vital tomorrow.
Yes, you’ve got to share services with family, help your neighbor fix his machine and vice versa. Share your car journey, share your homes rather than rent the …
But this is not the state’s interest.
The state must collect the tax.