France is considering making 2017 a year free of income tax

Francois Hollande flagREUTERS/Regis DuvignauFrancois Hollande, Socialist Party candidate for the 2012 French presidential election, waves a French flag as he reacts to supporters after an election campaign rally in Toulouse, May 3, 2012.

France is considering making 2017 a year free of income tax.
The government wants to shift to a system of automatic withholding, similar to that in the United States and much of the rest of the world.

Employees in France currently pay taxes a year after their income is earned.

Christian Eckert, France’s budget secretary, said Wednesday that the government will not double-tax workers in 2018, the year automatic withholding is to begin. So 2017 incomes could effectively be tax-free for regular salaries.

Taxpayers won’t actually feel much of a difference though — they would still spend 2017 paying for the previous year.

The U.S. began withholding taxes in 1943. Canada and Germany did so even earlier, in 1917 and 1925 respectively.

NOW WATCH: 4 things a leader should never do

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.