27 Sep 2019
During the 2020 budget, French President Emmanuel Macron vowed that he will deliver tax-cuts, as was previously promised to the Yellow vest protestors. Over €9 billion will cut in taxes, saving households money and boosting the economy.
It was said that the lowest income tax rate to be cut is 11%, being cut from 14%. The budget also proposed to aid low income earners by giving them a bigger bonus. France’s Finance Minister Bruno Le Maire said that the ‘social crisis’ that followed the protests and the ongoing global tensions that have affected the economy has ‘led us to make decisions that encourage investment and consumption.’ Macron had also stated, during his presidency campaign in 2017, that he will improve France’s financial situation.
Le Maire added, ‘We want to respond to the social crisis France has been through, and we want to respond to the marked slowdown in global and euro-zone growth.’ The tax cuts will not only be given to households, but also businesses. The business tax cuts will sum up to approximately €1 billion and will close tax exemptions and loopholes for firms.
The economic growth is predicted to be of 1.4% in 2019 and 1.3% in 2020. Le Maire said, ‘We can be proud of how the French economy is weathering the storm. France is an exception in the euro area.'