Macron’s tax cuts attempt to woo the French middle class


French President Emmanuel Macron on Monday night announced tax cuts of up to 2 billion euros for the French people. The announcement targets France’s middle class, which have borne the brunt of high inflation and stagnant wages over the past few months.

in a tv interview said host go through french national broadcaster TF1, President Emmanuel Macron monday night explain That his government is planning to propose tax cut Up to 2 billion euros to boost the purchasing power of the French people strength.

cut is Mainly for exist french woman and man WHO work hard arrive trying to raise their children, but Running out of money by the end of the month due to rising costsSecond living“, Macron says, Add tothat his the goal is Increase the disposable income of the French middle class.

The government’s new fiscal policy, However, does not directly translate to reduce exist income tax. According to Macron, the government is still exploring different way arrive reduce economic burden on the family.

“I do not want closure any door herehave quite few smart people method [to achieve tax cuts] pass [reducing] this social Security donation of employee Macron explain.

Meanwhile, the president fail supply an exact schedule plan tax cut Apart from explain they will put on place until the end of his term in 2027.

French middle class

despite macron quite vague describe last night he of the french middle class finding support, president have if clearer picture late last week.

in a Exclusive Roomread in french Daily L’Ogear published Sunday night, Macron talking about the middle class as those who brought home 1,500 to 2,500 euros per monthEquivalent to 1.08 and 1.81 times the minimum wage (EUR 1,383 per month). this represent a little over 50 percentage population based on Statistical data From the French National Institute of Statistics and Economic Research.

TonAccording to the president, the French middle class is made up Those “too rich to receive aid and not rich enough to live a comfortable life“.

However, Macron’s definition is Far from everywhere Economists and statisticians.

French Inequality Observatory definitionSecond middle class like 50 percentage Population between Poorest 30 percentage and the richest 20 percentage.

Tonhe organizedAnizOrganization for Economic Co-operation and Development (OECD) set a broader definition 68% French population as middle class, have income changing Between 75% and 200% of the median.

at the same time only 40% Populationbetween the richest 10% and poorest 50%, yes considered middle class French economist Thomas Piketty and Lucas Chancell.

Recycle publicC in favor of?

Macron Seems on a mission to win back the public support following Heavy Strongly opposedTon he has been since his government forced very unpopular Pension Reform Bill through parliament without vote two months ago.

In addition to announcing tax cuts, Macron also noted emphasize various fiscal measures Aims to increase the purchasing power of the French adopted by his government.

The French Ministry of Economy and Finance revealed tax cuts last year total 52 billion euros During Macron’s first five-year term in office.

“The tax cuts we’ve passed are all centered in the middle class,” Macron He saidointmentcompiled to pEarlier tax cuts, such as this reduce employee social security contributions, curb housing tax and one 4 euros Billion Income Tax Cut That is introduce the sternWell this Yellow vest movement.

Last year, the government also TV license fees abolished french family.

However, the President not mentioned whealthy repealed tax late 2018 Instead, a 30% flat tax on wealth and a tax on real estate The treasury cost is estimated to be between 3.2 and 5.1 billion euros per year.

not yet Prove its efficiency in boosting the French economy As promised by the government, tabolished the tax, a move that was heavily criticized at the time, seen French the richest 0.1% get balanced richer According to a report issued by the Policy Discussion Body France Strategy 2020.

the price paid

While Macron’s announcement may come as a surprise to some, to others it resembles political shift.

pointing at french protesters non-stopd Anger over pension reform laws, far left party france Carefree coordinator and Congressman Manuel Bompad tell the news channel Beijing FM TV Station Macron’s Monday night new announcement tax cut yes one try to divert attention Protests from anti-pension reform.

we just took two People have retired for years and we tell them not to worry because 2 billion euros in tax cuts,” Bompard said.

“Plus, tax cuts like this don’t make a lot of sense Without revealing details…though he [Macron] explain this is for middle class, We must remember that Macron’s first five-year term can be used in favor of Nationwide rThe most expensive 0.1%,” He said.

Meanwhile, French economist Thomas Porcher said Macron’s tax cuts revealed a governmental Attempts to increase wages fail.

If we can’t increase wages, then we will decrease Social Security contributions to boost take-home income,” He saidplus result no Always be positive.

“If you give your employees more purchasing power and you take away unemployment and pensions, [then] he still losing Polcher said.

Leave a Comment