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Public deficit: how can the government replenish state coffers?
Public deficit: how can the government replenish state coffers?
(FRANCEINFO)
In order to reduce France’s public deficit, the new government could increase taxes, particularly those on companies and employers’ contributions.
Tax increases could bring in more than 20 billion euros to the state. This is the supposed plan prepared by Bercy and its new Minister of Public Accounts, Laurent Saint-Martin. It is mainly businesses that would be called upon to contribute, with an increase in corporate tax from 25% to 28% (+7 billion euros in tax revenue) and an increase in employer contributions (+4 billion euros). ‘euros).
The bosses would be ready to discuss these tax increases, but only up to a certain point. “We cannot forever appeal to companies (…) which remain the most taxed in the world”reacted Patrick Martin, the president of Medef. The State could also tax high incomes more, by playing on the scale of five tax brackets, in order to recover an additional 4 billion euros.
Watch the full report in the video above.