Kanjor

[Drax]

CLAIRON PICARD
 
TAX REDUCTION AND REFORM

 

Chamber of Deputies, March 16, 5623:  Asked by CLAIRON PICARD what Federation Canrille (FC) would be doing about the Social – Democrate (SPD) bill to reduce the tax rate on the lowest income category, Finance Minister Roxanne Marvaux replied:
 

FC may just support it.  But we are considering amending the bill instead  to raise the floor on all the categories rather than lower the rates. This would be a significant income tax reduction. You may remember when we were formed it was to combat confiscatory income tax rates.  We have done that but we would like to go from tolerable to about right.
 
As you know there has been talk of taxing investment income as ordinary income for income tax purposes.  We think instead we will be taxing capital gains and interest income generally.  We will be specific but it will certainly include sale of business ownership such as stock shares, partnership and sole proprietorship interests, and interest on bonds.  The rates  will be low enough to be a mild irritant but not an outright deterrent to investment. We will endeavor to avoid ambiguity as to what is subject to corporate tax rate and what is subject to capital gains tax  but do expect tax lawyers to bill for quite a lot the next few years.  We expect a  Union Hosien- Democrate (UHD) bill to introduce a corporate tax rate reduction and our plan is to introduce an amendment doing what I have described.
 
Then there are estate taxes. Which are rather high. What we are planning is drafting a bill lowering the rates and raising the floor for taxation of each level. At the same time, we are planning to cap the allowable annual gift allowance and taxing overage.  Theoretically this will be classic pay me now or pay me later but we know tax attorneys will find ways to reduce tax liability as they always do. 
 
So looks like three bills will be going forward. They will lower income, corporate and estate tax rates but broaden the tax base. We are aiming at revenue neutral.  Think we will see PSD rather happy with overall tax picture and UHD less so.

 
CLAIRON PICARD can  confirm all three bills are in play and the FC plan has the votes to pass them.


Finance Minister Marvaux