The tax cut for households in 2017 less than the expected 2 billion – Le Figaro

The tax cut for households in 2017, to be announced next week, should be less than the expected 2 billion euros, said on Friday the Minister of Economy and Finance, Michel Sapin.

Details of declining withdrawals will be announced by President Francois Hollande on his return from the G20 summit in China or the Prime Minister Manuel Valls, “next week,” said for his part the Secretary of State for the Budget to Christian Eckert antenna RTL radio.

“the margin is not the same, keep talking 2 billion, we’re looking inside the current data what are the margins” Mr Sapin said on Radio Classique / First Paris.

the size of the tax reduction so far raised was around € 2 billion if growth had been higher this year 1.5% of gross domestic product (GDP).

the government recently revised to 1.5% against 1.6% previously its growth forecast for the current year, after the announcement a halt in the second quarter (+ 0.0%), which followed a strong start to the year (+ 0.7% in the first quarter).

originally this disappointing result, a slowdown in household consumption, lower investments and a decline in production affected by social movements against the labor law.

the INSEE foresees a rebound on the other two 2016 quarters (+ 0.3% and + 0.4%). Meanwhile, however, the bombing of Nice and the referendum on the Brexit added uncertainties

For now, the growth overhang. – Ie the annual growth of GDP in case of zero growth the last two quarters – stood at 1.1%, according to Insee

“the President said in the spring because it was a time when one could predict more growth.. everyone would agree today that it would be reasonable to build a budget superior growth outlook to 1.5%, “said Mr Sapin.

Minister had felt the day before at his monthly press conference that a tax cut was “necessary to France,” yet refusing to decide between the various options considered by the government to lower taxes for individuals: income tax, CSG premium or business.

the head of state François Hollande had said July 14 that taxes for households would decline in 2017 if growth was higher than 2016 and reached 1.7% of GDP

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