The Redistribution Of Public Funds In France In 1965 And 1970

The analysis of the redistribution processes via taxation, transfers and collective services raises several methodological problems among which tax incidence is not the least important. Through two hypotheses of incidence of employers’ social contribution the results of the redistribution of public funds lead to four types of conclusions. Despite the fact that about one third of the French national income is involved in the processes there is no clearcut evidence of any redistribution, except for the nonactive population in so far pensions are considered as redistributed. The positive effects which certain mechanisms may have (e.g. income tax…) are to a certain extent offset, or neutralized, by the anti‐redistributive effects of indirect taxation and social contributions. It appears that the results of the redistribution not only depend on the institution network, on the evolution of demographic structures and the rate of growth for the various types of income but also on lack of adaptation between the evolution of the three groups of factors. In last analysis, the reason why redistribution does not appear to have more far‐reaching consequences is that social policy amalgamates mechanisms often set up in isolation, whereas any reduction in inequalities must be based on a conscious awareness of the inter‐dependence of the situations which create and foster these same inequalities.