Francois Hollande confirmed that the withholding tax on income would be “committed from 2016 to be fully implemented in 2018″ , in a South West interview Sunday. Arguing that it was a reform “awaited by French and desirable for the State” , the head of state stressed that the withholding should “to complicate the lives of companies and even less ask the taxpayer” .
“Step by Step”
This reform, he said, “must be well conducted to be well implemented step by step, and it can not be done in less than three years “.
As asked if it will result in a “lost year”, the Head of State assured without elaborating: “We are preparing a project that will ensure that no one has to lose anything, neither the French nor the state. “
This” lost year “would see taxpayers pay tax on their income in the year of implementation of the reform and not on the previous year as is the rule until now.
No response on the merger of income tax and the CSG
As for the merger of the income tax and the CSG , a campaign promise, President Hollande begs the question. “The priority is tax cuts of the French” , he says, reaffirming that “this year More than nine million households will see lower their income tax “.
” If we want there to be further reductions in the future levies, we need more growth, more jobs, more investment. That is why government policy is to encourage the production, to allow more redistribution, “he added.
On the proposal of the former Minister of Recovery productive Arnaud Montebourg a “European strategy of tax cuts for households” , Hollande replied: “Do I remember that our public deficit reached 4% of GDP? “
” The French have understood perfectly that today’s deficits are tomorrow’s taxes. The fewer gap, the fewer tax tomorrow, “he argued.
(with AFP)
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