While held the first cabinet meeting of the season, the head of state wants to “make it fairer and simpler” the scale of the income tax, and merge the earned income tax credit and the RSA. He reminded the socialist order slingers and the president of MEDEF.
“I want to speed up reforms.” On the occasion of the first Council of Ministers of September, the president has put his foot in it. Pressed by Brussels and its European partners to improve the economic situation of France, Francois Hollande announced on Wednesday, two tax measures to restore purchasing power to the lowest-paid workers.
• Tax Measures
These two reforms to be incurred “from the Finance Act,” is intended to replace the graduated reduction in employee contributions that Constitutional Council retoquée August 6. “One will be to make it fairer and simpler the scale of income tax especially for the first layer, says the head of state, in an interview with World . The other will merge the employment premium (EPP) and the RSA activity to promote the resumption of work and improve employee compensation precarious. ” One measure that has received mixed reviews both the right and left.
Established in 2001 under Lionel Jospin to “encourage them to return to employment or continued activity” PEP is a tax credit that benefited 6.3 million tax households in 2012 His schedule has been frozen since 2009, and the average amount reached 434 euros per year. It would cost the state nearly $ 2.5 billion in 2013, an amount almost halved since 2008, highlighted the Sirugue Christophe PS deputy in a report in 2013 to the government. This decrease is partly explained by the creation in 2008 of the “RSA activity” (170 euros per month), another support mechanism for modest workers who benefit some 700,000 homes at a cost of € 1.5 billion.
• Pact responsibility “no scull” or “zigzag”
The President also reaffirmed the direction Pact responsibility excluding any “sculling or zigzag.” One way to meet the slingers of the Socialist Party who accuse him, with this measure, want to make a gift to the bosses. “It is not because the situation is more difficult in France and Europe that we must give it up, he says. Instead, we have to move faster and further. “
” The signing of the France reliable and respected. This is evidence of the seriousness of our policy. That’s also what credibility “
Francois Hollande did not fail also to send a strong message against the president of MEDEF, recalling that the pact is” a contract in which everyone must abide by its commitments. ” “The government has held his own” by releasing 40 billion euros over three years to improve the competitiveness of firms in response to Pierre Gattaz, who in a blog note published on Monday, called Francois Hollande to do more.
• Public debt
Although the French public debt has exceeded last Sunday, the bar of EUR 2000 billion, President Sarkozy rejected the idea of rescheduling, as suggested by the Secretary of State for State reform and simplification, Thierry Mandon. “The signing of the France reliable and respected, he replies. No offense to grumpy, this is evidence of the seriousness of our policy. It is also that credibility. “
While the French economy stagnated for two quarters, the President also announced, without going into detail, reforms to boost growth in housing, investment, learning or regulated professions for which Arnaud Montebourg will present in September a bill to increase competition in the services offered to consumers. As Finance Minister Michel Sapin, last Thursday after the release of a new zero growth, Francois Hollande also calls on Europe to take responsibility. “This is what France will wear in the forthcoming debate with our partners, he says. But I do not discard me hear about Europe, because our country has a problem of supply. “
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