Where does the tax money go?

We don’t get a lot of emails from the French government so when something comes through with a return address that includes “gouv.fr” it catches your attention. When that is preceded by “Direction Générale des Finances Publiques” it’s especially noticeable since that’s the office responsible for les impôts otherwise known as taxes. We’ve never had a problem, even with our first filing, and now with everything online and generally already filled in for you based on the previous year’s amounts, it’s just a matter of updating the figures and attaching your electronic signature. This email was indeed looking for something from us, but not money.

So what did they want? Our opinion “on the level of your taxes, your public services, or on the use of public money in general. In less than 10 minutes, you can make your voice heard on these important topics.” Sign us up! The website added, “The responses will provide lessons for future budgets.”

Being asked for your input is certainly a compliment but I was fascinated by the additional information that was provided on the voting website. In the pie chart below you can see, in euros, how each 1000 € of public money was spent in 2019. Because I wanted to make a comparison with the US, I put the numbers into percentages and added a few details of what each major category included, in the table below.

Major categoryIncludesPercentage of total
Social ProtectionPensions, healthcare, unemployment, assistance57.2
Sector ExpendituresTransport, culture, environment, infrastructure15.6
EducationSchools, universities, training9.5
Government OperationsCosts to run the government6.6
Federal PowersDefense, security, justice6.0
DebtPublic debt repayment2.8
ResearchMedical, scientific2.3

Source for the table above: https://www.economie.gouv.fr/enavoirpourmesimpots#

For Fiscal Year 2022 here are the top 10 US Government spending categories:

Major categoryPercentage of total
Social Security19
Health15
Income Security14
National Defense12
Medicare12
Education, training, employment, social serv.11
Net Interest8
Veterans Benefits and Services4
Transportation2
General Government2
Other1

Source: https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/

This isn’t the first time that we’ve been asked for our input on how public funds should be spent. Our département solicits ideas from residents for projects that should be included in an upcoming budget and those that receive the most amount of support get funded. The first year that we voted in this “participative budget” we were able to see bird and bat houses added to our neighborhood and the elimination of pesticides in the community.

Note: To see all of our blog posts about filing taxes, please click on the tag “Tax” in the right hand column.

To respond to the questionnaire online: https://www.economie.gouv.fr/enavoirpourmesimpots/consultation-participez

All illustrations are from the government website: https://www.economie.gouv.fr/enavoirpourmesimpots#

6 thoughts on “Where does the tax money go?

  1. A huge misunderstanding about French taxes (which I used to believe, as well) is that they must be very high to afford to pay for healthcare and other “social programs”. But on lower incomes the French tax very fairly, in my opinion, and the very wealthy pay their fair share, too.

    Liked by 1 person

    1. Hello Honey, thank you for asking. In the chart, the 6% listed for Federal Powers is divided into 3.1% for Defense, 0.4% for Justice, and 2.5% for Security.

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  2. Hi Bob,
    I like it when you guys do posts like this. On a different subject, I recently read a French news article from Carcassonne which talked about a medical clinic closing due to a lack of doctors. Has this situation (lack of doctors) personally affected you guys?

    Thanks for your insights on moving to and living in France.

    Chris Nord

    Liked by 1 person

    1. Hi Chris, thanks for your nice comments and we’re happy that you find the blog helpful. Your question is very timely. Spoiler alert–our doctor just retired and an upcoming blog post will provide the details of why we’ll still fine. Thanks again.

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