France, to cut household taxes in 2017

Economy Nilgun Salim
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The French government plans to lower income taxes in the upcoming year. The economical measure meant to reduce 1 billion euros in taxes, just seven months before the presidential election.

The strategy will lead to an overall reduction of taxes from 2014 until now to a total budget of six billion euros. This reduction will benefit more than 5 million French families, exempted by approximately €200.

This proposal is a lot more efficient and profitable for the French people in comparison to the strategy suggested by President Francois Hollande in summer.

This upcoming tax relief reflects France’s weakened economic recurrence and its struggle to establish the budget deficit by 2017.

That is a drop from the current headline rate of 33 percent, although small companies benefit from a lower rate on a certain amount of profits.

Hollande, whose popularity became really low in the last months, has not yet confirmed if he will run in the next presidential election in April.

He also decided to lower the corporate income tax for companies with less than 250 employees next year, as part of a 4-year plan to cut taxes for all businesses by 2020.

Business investments will be affected by the uncertainties surrounding the Brexit, which also affected France.

The efforts regarding a potential fiscal consolidation of France might stumble in the next years if the spending will not become lower than the inflation rate. Pretty much, what France failed to do in the last two years.