Alongside the high interest rates prevailing at the beginning of the 1990s, the excessive level of taxation was one of the sources of France's massive unemployment. High taxes discouraged workers and added to businesses' cost burden.
High taxes are taxes on jobs.
One million jobs have been created in the French business sector in the last three years, thanks to economic policies favouring growth and the employment content of growth. The multiannual tax reduction plan carries these policies forward. It will accelerate the return to full employment in coming years by increasing the earnings of all workers, encouraging investment in France and removing the obstacles that keep people out of the labour market. A reduction in income tax will mean that everyone who works for a living will keep a larger proportion of his earnings. This measure will encourage labour supply and social mobility.