French Socialists eye tax rises after big poll win

Source: Reuters

(Reuters) - France's Socialists vowed on Monday to use a resounding victory in weekend parliamentary elections to pursue President Francois Hollande's drive for growth in Europe while sticking to promises to cut the budget deficit, mostly through taxation increases.

Hollande will use a special session of parliament next month to whittle down France's numerous tax exemptions and pass tax rises for large corporations, especially banks and energy firms, in a bid to cut the deficit to within the European Union's 3 percent limit by next year despite a stagnant economy.

Economists expect the Socialist leader - who has also pledged a 75 percent tax rate on those earning over 1 million euros - to use an audit of the state's finances due early next month to water down his campaign pledges to increase spending on welfare and education and justify tax rises.

Final results from Sunday's election showed the Socialists won a comfortable majority of 314 seats in the 577-member National Assembly, freeing them from reliance on euroskeptic far-leftists opposed to more austerity measures.

Read more: http://www.reuters.com/article/2012/06/18/us-france-election-idUSBRE85H1E520120618

---

Tax the rich!