France eyes tax cuts for wealthy in bid to lure business
Macron attempts to strike balance between reigning in deficit and bringing investment
As France’s Prime Minister Edouard Philippe continues to fulfill his duty as the harbinger of unpopular news to shield Macron, he said he would announce reforms that may include tax breaks for the wealthy.
Speaking to the Financial Times, Philippe said the timing of the reforms would be announced to parliament soon to give households and companies clarity.
The current tax regime includes rates that can reach upwards of 60% for the country’s wealthiest earners. The reforms would be a dramatic departure from the previous Hollande administration which fought for a 75% tax rate on the rich.
“There is a discussion on whether we implement the reform on the wealth tax entirely in 2019 or whether we move it forward, or whether we do in two steps,” Mr Philippe said.
Those pushing for tax cuts to come sooner are hoping to capitalize on uncertainty in the UK ahead of Brexit negotiations to lure investors and banks from London to Paris.