French tax-cutting bill passed by Assembly

17th July 2007, Comments 0 comments

PARIS, July 17, 2007 (AFP) - The French National Assembly late Monday approved a tax-cutting bill which encompasses key manifesto pledges made by President Nicolas Sarkozy.

PARIS, July 17, 2007 (AFP) - The French National Assembly late Monday approved a tax-cutting bill which encompasses key manifesto pledges made by President Nicolas Sarkozy.

The Law on Work, Employment and Spending Power was voted through by the Assembly's large centre-right majority and will now move before the upper house of parliament, the Senate, on July 25.

The law's main provision is to remove tax and social charges from overtime hours -- a measure which Sarkozy says is meant to restore an appetite for work among the French.

It also abolishes inheritance tax for all but the very wealthy; places a 50 percent ceiling on income tax; introduces tax relief for household mortgage-payers; and places restrictions on so-called "golden parachutes" paid to departing company bosses.

MPs from the opposition Socialist Party described the law as a series of "gifts to the rich" but Economy Minister Christine Lagarde told the Assembly it should generate an extra half percent of economic growth in 2008.

The government estimates the annual cost of the tax cuts at 13.6 billion euros (18,75 billion dollars). 

The predicted loss of revenue has forced the government to backtrack on promises to the EU to balance the national budget by 2010.


Copyright AFP

Subject: French news

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