Financial News
- 1 October 2012, 3:57
French Target Rich And Business In New Budget
The French government is targeting big business and the wealthy as it aims to reduce its budget deficit and kick start growth.
The ruling socialists are reducing the threshold for a wealth tax, bringing in a 45% marginal tax rate for high earners, while those earning over 1m euro (£820,000) a year will have to pay 75% of their taxable income to the treasury.
Industry is also in the firing line - tax breaks for business brought in by former president Sarkozy will be shelved, and large companies will be paying more capital gains tax.
"This is a serious budget, it's a leftist budget and it's fighting budget," French finance minister Pierre Moscovici said.
In all, these measures will contribute 20bn euro (£16bn) to the coffers, while spending cuts will account for another 10bn euro.
The 2013 budget is designed to reduce France's budget deficit from 4.5% to 3%.
France is the second largest economy in the eurozone, but has been struggling with stagnant growth for three successive years, and unemployment has just passed the psychologically and politically damaging barrier of three million.
Critics have rounded on the government over the budget, saying it sends a message that France targets the rich and dislikes for business.
"France is sick from a model that isn't viable," Guillaume Carou, CEO of Didaxis and president of the Club of Entrepreneurs, which represents 15,000 small businesses said.
"But (the government has) chosen to keep it, that's what the 2013 budget reveals."
President Hollande was elected four month ago on a tide of anti-austerity fervor, but has seen his popularity fall from 63% to 43%, as he has been forced to alter or abandon key electoral pledges.
what do you think?
Grant Berry
This will be a great example of socialist policy in action - wait & see what happens. They will win the Tories the next election in the Uk when people see that socialist policy doesnt work in real life only in opposition has a protest group. They actually believe people work hard to then be happy to give it away. Joke ! France will become uncompetitive in the world markets & find themselves stuck in the mud.
Gordon Berry
Totally agree. Socialism spreads poverty
t.bulgin
I think the majority in this country allready know what socilaism does to an economy. (re- 13 years of irresponsible spend,spend,spend policies from our last givernment of idiots...."theres no money left, we've spent it all" ) However it is nice of the French to provide a reminder.
Grant Berry
The Uk will be happy to have all their rich & big businesses, Cheers President Hollande !!
blue side
Funny we all think alike.
Anthony Smith
Yes, it will be great to have have few more tax evaders over from France, in addition to the ones we already have.
Grant Berry
Anthony they are producers & not parasites they contribute - who would you prefer?
Anthony Smith
Grant, I prefer people who don't evade tax, whatever their domicile!
Grant Berry
who do you know who would pay all their taxes if they had the chance??
Jonathan Goodwin-Self
So the French does it to the rich but Cameron does it to the middle class, poor and pensioners
Mick Salt
That's a bit of an over-simplification. However, there does need to be measures introduced here to control "tax efficiency" by big business. The French entrepreneur was right - France needed to dismantle its outmoded employment practices, but has chosen to aggravate the harm they're already doing. French entrepreneurs were already leaving France in droves, many of them to set up business here in the UK. His latest policy will just accelerate the drain
blue side
Nicely said Mick
t.bulgin
Lets hope so Mick. It will surely mean more jobs for British workers
Dave Harrison
Hollandes popularity falls 20%, as he alters or abandons key electoral pledges no doubt as he digests a large dose of realism. Take heed people it is easy to make promises to voters in opposition and who cares when they find out I am in power for 5 years. Plenty time for them to forget.
stephen
i never forget
blue side
Dave seems the whole process is to paint a picture of utopia then get elected and enjoy the pickings. I just hope the socialist voters of this country take note of what happens when you squeeze the producers of wealth.
Dave Harrison
Thats right Blue Side. Lets just sit back for 2 years and watch socialism in action across the channel. We will then have a clearer idea of what may be in store for us after 2015 ---and shudder
Richard Crowther
The cry used to be "Off with their heads!" Now it's "Empty their wallets!"
Anthony Smith
It's interesting to note that unemployment in France has just passed the 'psychologically and politically damaging' figure of 3 million. Obviously they are not as adept at cooking the books as our lot!!
t.bulgin
and the real unemployed figure in France is ?
Adrian Wagstaff
You could say, all those millions of people who died in the French Revolution, died for what? To remove the power of the few elitist super-rich aristocracy? Today ... ohhh ... today, the difference ... if any ... is just ... what?
Thomas Cat
A frenchman's tax return is worth as much as his wedding vows.
blue side
1:52pm on 28/9/2012
Now I know where Clegg and the Libdems are getting their ideas from. Bet France slides deeper into problems. I often wonder what pills politicians take to make them come up with stupid ideas. The only good thing might be the end of the Euro and a re-think on the EU.
Gordon Berry
3:21pm on 28/9/2012
So right. Europe needs less government interference not more.
Edgar Beckett
6:21pm on 28/9/2012
Says you and everyone else