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France to cut business, household taxes

Staff Writer |
France’s government unveiled plans to lower taxes on households and companies, as the ruling Socialists lined up their budget for the 2017 election year.

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The gesture to households would "take the form of a reduction in income taxes by 20 percent for the middle class," French Minister of Finance Michel Sapin said. About 5 million households would benefit from the 1 billion euro ($1.1 billion) reduction in income taxes, worth about 200 euros per family.

Sapin also said that the headline tax rate for small and medium-sized companies would be reduced to 28 percent — the European average in 2017 and 2018 — and for all companies from 2020.

That is a drop from the current headline rate of 33 percent, although small companies benefit from a lower rate on a certain amount of profits.

However, Sapin said that despite the tax cuts France would honor its pledge to the EU to reduce its public spending deficit to 2.7 percent of GDP next year.

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