This is a note to myself for an article about European tax trend from the Economist.
European tax payers has experienced bad time of increase of their tax burden for past 5 years. Most of countries across the Europe heavily relied on their tax rise to mitigate their budget deficit. However, many of these countries started to cut them rather than increasing these days.
France and Italy announced their plan to reduce payroll tax. Even Britain proposed tax cuts from low or medium income tier. Few countries are attempting to make up the shrink of tax income by increasing borrowing, which lead to further criticism. But most countries plan to propose public-spending cuts. As Euro zone cannot devalue their interest rates that has been already at the bottom, tax cuts are one of the few ways to mitigate the businesses' burden.
Lower labour costs will encourage the businesses to employ extra workers as well as their investment. This would give a welcome boost to growth. These strategy will be judged by voters mainly on whether it can be trigger for the economic growth and increase of employments with less burden on the businesses.