French President Emmanuel Macron announced on Monday night tax cuts of up to €2 billion for the French. The announcement targeted the French middle class, which has been bearing the brunt of high inflation and stagnant wages in recent months.
Speaking in a television interview hosted through National French broadcaster TF1, President Emmanuel Macron on Monday night SAYS that his government plans to propose tax cuts up to €2 billion to boost French purchases power.
The cuts are primarily addressed on “French women and men WHO work hard on trying to raise their children but run out of money at the end of the month due to rising costss to live“, Macron said, inputin that his the goal is to increase the disposable income of the French middle class.
The new fiscal policy of the government, however, does not directly translate into a reduction on income tax. According to Macron, the government is still investigating different ways on reduced the financial burden in homes.
“I don’t want to closed any doors HERETHERE quite a some intelligent ways [to achieve tax cuts] through [reducing] THE social security contributions on employees,” Macron said.
Meanwhile, the the is president failed to GIVING an exact timeline for plan tax cuts APART to say that they will do put in SITES at the end of his mandate in 2027.
The French middle class
Despite Macron’s not clear ILLUSTRATION night He is from the French middle class INVITING to strengthen, the president THERE GIVEN more clearly the picture is late last week.
In a exclusive interview with the French daily L’Oselect PUBLISHED Sunday night, Macron talking about the middle class as they are who took the house between €1,500 and €2,500 per monththe equivalent of 1.08 and 1.81 times the minimum wage (€1,383 per month). it represents more than 50 PERCENTAGE of population based on statistics from France’s National Institute of Statistics and Economic Studies.
Qhe French middle class, according to the president, is done of those “who are too rich to receive aid and not rich enough to live comfortably“.
Macron’s definition, however, is DISTANCE from ubiquitous among economists and statisticians.
Defined by the French Observatory of inequalitiess the middle class is like that 50 PERCENTAGE of the population located between poorest 30 PERCENTAGE and the richest 20 PERCENTAGE.
Qhe OrgmanyOrganization for Economic Co-operation and Development (OECD) sets a broader definition that can be seen up to 68 percent of the population of France as middle class, with income a vast variety between 75 percent and 200 percent of the median.
while only 40 percent of the populationlocated between the richest 10 percent and the poorest 50 percent, is the considered to belong to the middle class by France economists Thomas Piketty and Lucas Chancel.
Recovery publicc PRO?
Macron seems to be on a mission to win back the public ‘s support compliance with HEAVILY backlasht he is already there faced since his government forced the not very popular pension reform bill through parliament no vote two months ago.
Apart from announcing the planned tax cuts, Macron took care underline some financial measures aimed at improving the purchasing power of the French which was adopted by his government.
France’s economy and finance ministry last year unveiled tax cuts GENERAL AN € 52 billion during Macron’s first five-year mandate.
“The tax cuts we’ve been through are completely focused on the middle class,“Macron he said pwooled pCHANGE tax cuts like THE reduction of employee social security contribution, housing tax suppression and the €4 billion income tax cut that is introduced BACKGROUNDis the THE movement of the yellow vest.
Last year, the government too TV license fee is abolished for French households.
The president, however, not talking about wEARTH tax eliminated LATER 2018 and replaced by a flat tax of 30 percent on wealth and a real estate tax at a cost to the treasury estimated between €3.2 and €5.1 billion per year.
Before prove its efficiency in boosting the French economy as promised by the government, this abolition of taxation, a measure which was much criticized at the time, had FOUND in France the richest 0.1 percent will reciprocate richer according to a report published by the policy discussion body France strategy in 2020.
The price to pay
While Macron’s announcement may come as a pleasant surprise to some, for others it is similar a political diversion.
Teaches the French protestors‘ ourd anger over the pension reform law, far left party La France lawless coordinator and PM Manuel Bompard said the news channel BFM TV Monday night Macron’s newly announced tax cuts is the the attempt to shift attention from anti-pension reform protests.
“It’s just us took both years of retired life from people and we tell them not to worry because of a €2 billion tax cut,” said Bompard.
“Besides, tax cuts like this don’t really matter if no details are revealed … despite him [Macron] States it’s for middle class, we must remember that the first five years of Macron’s mandate can be summed up in favorable policies in the country r0.1 percent,” he said.
French economist Thomas Porcher, on the other hand, said that Macron’s tax cuts reveal the the government failed attempt to increase wages.
“If we don’t increase wages, we will decrease social security contributions to increase household income,” he saidadded that the result not always positive.
“If you give more purchasing power to an employee but take away the unemployment and retirement benefits, [then] HE still lost,“ Porcher said.