France announces income tax reform

French government announced Wednesday an income tax reform in order to help the middle class and boost the economy.

French Finance Minister Thierry Breton told the French newspaper Le Figaro "Everyone will gain...the main benefit will be paid by salaried, middle-class workers, those who earn between 1,000 and 3,500 euros (about 1,230 to 4,300 dollars) per month."

Meanwhile French Budget Minister Jean-Francois Cope told France Inter Radio that a main principle of the reform was fairness.

The government gives priority, after unemployment, to "returning buying power to people", he said.

The new tax bands for income tax will range from 5.5 percent to a maximum of 40 percent, replacing a range of 6.83 percent to 48.09 percent. Breton said that the total amount any taxpayer could be charged in respect of income tax, wealth tax on assets, and local taxes would be limited to 60 percent of income.

This particular measure is estimated to affect 120,000 wealthier taxpayers.

Middle class is widely seen in France as increasingly important as an electorate, especially when France is to hold presidential and legislative elections in 2007.

Source: Xinhua