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700 education nationale and 4400 to the defence

Presented today, the last act of the legislature finance project amplifies the tax cuts already passed, without however to reduce the rate of compulsory.

Priority given to the Justice

in a budget very tight

In a 2007 budget tight as ever, since the progress of the credit is limited to 0.8, i.e. 1 point lower than projected inflation, the priorities were reduced to the minimum portion. Known since the June budget orientation debate, the distribution of credits is beautiful to Justice, whose spending will increase the year next 5 from 2006. The context of Outreau there is no stranger, even if it is above all to resume, after the interruption of this year, the increase in the number of magistrates, the modernization of the tool and the renovation of the housing stock. The planning budget increases well by 12, but in lower volumes. Other priorities are the external action of the State ( 3.6), the public aid to development ( 2.7), security ( 2.7), research and higher education ( 2.6) and defence ( 2.2).

Above all, the last budget of the quinquennium poster 15,000 deletions of posts in the public service, including more than half (8.700) education nationale and 4,400 to the defence. However, a part of the deleted posts are already vacant posts.

The household tax worksheet

Lean 5.7 billion

Off social security payments, taxes for the French will be lightened in 2007, due to the entry into force of the new scale of the income tax. Voted last year in the 2006 budget, it has now five slices instead of seven and integrates the discount of 20 on wage income. Its establishment induces a tax cut of 4.2 billion euros and, due to the removal of a discount on the rental income, an increase of EUR 560 million CSG.

The reform also introduces a tax shield: the personal income tax is now capped at 60 of the revenues. Furthermore, the premium for employment is not adjusted 500 million, as provided for in the 2006 budget, but of EUR 1 billion, as was decided Dominique de Villepin to the re-entry. To add two new provisions: the strengthening of the zero rate loan (EUR 320 million) and an additional cost of childcare (300 million) tax credit. In total, the household tax worksheet is lightened 5.7 billion.

New bad surprise

for businesses

This year, the State budget is also interesting for companies, even if the strict new measures are, negative. The main tax of 2007 voted last year: it is the business tax reform. The cap value added and the rebate for new investments represent 2.7 billion.

Other tax cuts, distilled by Matignon and Bercy in recent weeks, are more scattered: removal of charges at the level of the SMIC for less than 20 employees (370 million euros), increasing the tax credit research (200 million), restaurant (180 million) aid, program "gazelles" (60 million) and modification of tax on company vehicles (40 million).

Conversely, the burden of enterprises risen EUR 800 million through participation and 500 million securities tax regime change by a new measure: plan of the last deposit of corporate tax, which had been modified in late 2005 for companies doing over $ 1 billion in saleswill be also changed for those selling more than 500 million euros. In total, this results in relief of slate of EUR 2.3 billion, compared to the 800 million registered a year ago in the draft budget for 2006.