Evaluation des effets sur l'emploi d'une réforme de la fiscalité locale sur les entreprises en France

The aim of this paper is to evaluate the consequences of the reform of the local enterprise tax on labour supply. The purpose of this reform is to increase labour supply by exempting wages from the tax. Results show that the effects of the reform crucially depend on factor substitution possibilities and on the production reaction to a cost decrease. The localities response to the suppression of a part of their fiscal establishment is also important. Results show that the increase in local tax rate may not be expected. On the contrary, a decrease in the local public goods is to be feared.