Valls announced a reduction in corporation tax for SMEs – Le Figaro

In an interview with Express , the Prime Minister says that the rate of corporation tax will increase from 33.3% to 28%. The government is also considering a reduction of tax on household income or an increase in the premium business.

The government Lights against a fire. While Nicolas Sarkozy said he was running for President of the Republic Monday, unveiling its program in stride, Manuel Valls gave a long interview on Tuesday in L’Express, in which he announced, among other things, a new measure for companies. The rate of corporation tax will be reduced for SMEs alone, as announced by The Figar o, from 33.3% currently to 28%, “a portion of their profits” , said the Prime Minister. This is a level much closer to the European average, and a measure demanded by SMEs. The measure included in the draft budget for 2017.

The government and implements the third part of his responsibility pact for companies, which will be given back their 41 billion euros of competitiveness between 2013 and 2017. There remained indeed EUR 5 billion to be repaid in 2017. the decrease in the tax rate on SME companies is only one measure among others for this third installment. According to information from Le Figaro in early August, the government should spend about 400 million euros to the latter measure. The entourage of the Ministry of Finance then explained that it was “to give the direction we want to go, namely a corporate tax rate to 28% for all companies in 2020″.

Among the other pro-business provisions of this third part included a further reduction of social contributions by self with low incomes who do not have the CICE, and an increase in the tax credit, also announced Manuel Valls. This increase from 6% to 7% on wages paid from 1 January 2017. This measure will cost 3 billion euros. Finally, continued the Prime Minister, the incentive scheme for industrial investment will be extended until the end of 2017, at a cost of 800 million euros.

As of this time households, “arbitrations for 2017 have not yet been made, he said. They are related to growth prospects. But the president and I want to continue to restore purchasing power to the French. Different tracks are considered: continuing decline in income tax or increase the premium business. ” The head of state has indeed conditioned further tax baissse a growth of at least 1.7% in 2017, a hypothesis including the OECD and the IMF consider the unlikely achievement. François Hollande should decide on this subject before the end of the summer.

According to the Prime Minister, the government will be able also to meet its deficit target for 2017, ie less than 3% of GDP. By the end of five years, “we will continue to act and innovate, while continuing our efforts to reduce deficits. I confirm here that we will reach our goal of less than 3% in 2017 “.

Finally, this fall, the government will undertake a reform of social minima “with raw simplification measures in the draft Social Security financing law”. Manuel Valls said he favored a debate on universal income, this resource set to replace all social aid “provided to clarify the terms and conditions”. Because in no doubt, provides Manuel Valls, the fight against insecurity and poverty are also at the heart of the presidential election.