Wednesday, October 1, 2014

Budget 2015: less tax in sight but much rigor – Le Parisien

Budget 2015: less tax in sight but much rigor – Le Parisien

<- Hard dé e: 0.015022993087769 sec -> Savings, a gesture of appeasement tax for a higher than expected deficit. Here’s what to expect from the state budget for 2015 will be unveiled on Wednesday at the Council of Ministers.
                 
<- hard dé e: 0.020502090454102 sec -> Finance Minister Michel Sapin and the Secretary of State for the Budget Christian Eckert must comment on the draft budget law (PLF) at a conference of Press under 8:00 to Paris

The slogan. economies. In all, France must release 21 billion euros next year, to be divided between the state, social security and local authorities.

To do this – to the dismay of local officials – endowments of local authorities will be reduced by EUR 3.7 billion in Budget 2015 A decline in the value of the expenditure of the State of one billion euros is also planned. She should grow by six billion. This represents an effort of seven billion.

Healing the “tax-the-top heart”

No matter however to waive the measures promised last summer to households, to treat “high-le-heart tax” of French. For households, the first installment of income tax will disappear next year, bringing the entry threshold to about EUR 10 000, and a system of haircut should be implemented. This device with EUR 3.3 billion in total, should benefit 9 million taxpayers.

For businesses, support mechanisms will continue to ramp up. In particular, the tax credit for Competitiveness and Employment (CICE), operational since spring 2014 The 2015 budget must also seal a decrease of certain taxes imposed on them, including C3S, and realize the promise of stimulus housing sector recently made by Manuel Valls.

The mystery should be lifted on Wednesday on the taxation of diesel. Christian Eckert had recently indicated that an increase of two cents per liter was being considered to fill the shortfall resulting from the ecological tax reform.

Background of sluggish growth

This budget is in a difficult situation. The country is facing both a very weak growth and inflation slowed. What complicates the calculations by curbing revenue and offsetting some rigorous efforts.

The government, which has had to revise its growth targets downwards, not table a growth of 0, 4% in 2015 and 1% in 2015 the general government deficit in France will suffer. The state welfare systems and local authorities should acknowledge and next year an overdraft corresponding to 4.3% of gross domestic product, barely reduced the deficit from 4.4% expected in 2014.

Paris initially promised to return next year to the 3% limit set at European level, and will therefore be justified in Brussels as well as with other members.The government states like President Francois Hollande have already warned that no additional effort would be made to contain the skid means a debt that grows rapidly to over 2,000 billion euros now, which is double the level it was a decade ago.

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