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Old 30th Jul 2013, 09:39
  #3416 (permalink)  
AlpineSkier
 
Join Date: Jan 2009
Location: The 3 Valleys
Posts: 187
France: bad news on the tax front for 2014

Le gouvernement planche sur une hausse d'impôt des plus riches en 2014

Comment sera financée la réforme des retraites

Hell, this is not looking good. Just in one day's news, two different reports of different taxes that Hollande is looking to increase because of a big hole in the national accounts. Whatever increases are decided will be in addition to a rise in TVA (VAT for Brits !) already planned for 2014.

The top article talks of a tax aimed at the rich ( i didn't read the whole article, since I'm not rich ) which seems bone-headed to me. Why are politicians too stupid to learn ? I make this comment because the various Socialist flag-ship taxes which floated Hollande to power ( punitive 75% tax on salaries over E 1 million, extra taxes on second home sales ) have been shown to have reduced tax-income because:

a) Many companies moved their top-earners overseas ( UK, CH and B all say thank you ).
b) Number of second home sales decreased dramatically.

Trying to be objective (yes, honestly ! ) this looks like economic nonsense. When will this government realise that ever higher taxes on a diminishing tax-base is not the answer and that they need to reduce the value of benefits as well as cut the number of people taking these benefits.

Unfortunately I see a 0.01% chance of this happening with Hollande and probably only a 5% chance with any other government unless somebody has an epiphany like Gerhard Schroeder when he turned his back on a lifetime of socialist policies and introduced the very, very tough social measures collectively called "Agenda 2010 " in W Germany.

He did this late in the term of his government when his chances of winning the next election were practically zero, so you could speculate that he finally abandoned party dogma to do the right thing for the health of the nation.

Last edited by AlpineSkier; 30th Jul 2013 at 09:46.
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