France slaps 7 billion euros in taxes on rich, big firms

[Eugene]

Source: Reuters

France slaps 7 billion euros in taxes on rich, big firms

By Daniel Flynn
PARIS | Wed Jul 4, 2012 10:55am EDT

(Reuters) - France's new Socialist government announced tax rises worth 7.2 billions euros on Wednesday, including heavy one-off levies on wealthy households and big corporations, to plug a revenue shortfall this year caused by feeble economic growth.

In its first major raft of economic measures since Francois Hollande was elected president in May promising to avoid the painful austerity seen elsewhere in Europe, the government targeted companies and the rich with tax hikes.

An extraordinary levy of 2.3 billion euros ($2.90 billion) on wealthy households and 1.1 billion euros in one-off taxes on large banks and energy firms were central parts of an amended 2012 budget presented to parliament.

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Hollande says the rich must pay their share as France battles to cut its public deficit from 5.2 percent of GDP last year to an EU limit of 3 percent in 2013 despite a stagnant economy and rising debt.

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Read more: http://www.reuters.com/article/2012/07/04/us-france-budget-idUSBRE86307X20120704

[datasuspect]

1. you have to make rich motherfuckers pay

goddamnit!

[Wounded Bear]

2. Can't wait to hear the howls...

from the RWers.

[beveeheart]

3. Vive la France!

this former French teacher says.

[MrTwister]

4. That's what the voters wanted.

It must be great to live in an educated country.

[Aerows]

8. No kidding

And welcome to DU, educated poster

[davidwparker]

9. +1

[dtom67]

5. Just wait...

the Powers-that-be will soon take steps to tank the French economy, much like the Right-wing here in the US.

[dtom67]

6. its in their best interest...

they cannot allow this precedent to create any positive effect for the French people. They will attempt to contain this " contagion ".

It will not be pretty...

[gtar100]

7. And then blame it on the tax increase.

Standard operating procedures for the wealthy who do not appreciate their position in life.

[stockholmer]

10. meanwhile, the giant French zombie banks like Société Générale, BNP Paribas, Crédit Agricole, etc

will continue to be bailed out, propped up and drain the citizens and state coffers. I also fear that some of these measures will come crashing down onto the middle classes' backs, such as the removal of overtime pay tax breaks.

France already has one of the most labyrinthine and expensive systems on the planet when employing people. The unintended blowback from this may be even higher unemployemnt rates, and a further flight of capital form the country, thus actually reducing state revenues.

A financial turnover tax is truly what is needed, 1% on all turnover with first 1 million euros exempted. Not only would this produce billions in new revenue, but it would kick the banksters right in the gonads and vastly erradicate their uber-corrupt high frequency trading matrix.