(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.
The law, which also includes increases in taxes on stock options and dividends and the scrapping of tax exemptions on overtime, should easily win parliamentary approval before a July 31 deadline, given the Socialists’ comfortable majority.
[More]
See Also:
If we must have Lords reform, we should have a referendum first
The City loses out as the mob go banker-bashing
Barclays looks like the victim
Cyprus to pursue growth and austerity during its EU presidency
Labour aides, not Bank of England, to blame for rate-rigging scandal
Afternoon Updates:
12:02 pm EDT, July 5th, 2012 — ECB set to cut interest rates to fresh record low
12:03 pm EDT, July 5th, 2012 — Debt crisis: Italy’s deficit to double, but Germany’s to halve
12:05 pm EDT, July 5th, 2012 — Fraud trial for Rodrigo Rato over Bankia collapse
12:06 pm EDT, July 5th, 2012 — Should Germany exit the euro?
12:07 pm EDT, July 5th, 2012 — Why the euro crisis isn’t over yet
12:08 pm EDT, July 5th, 2012 — Monti, Merkel clear the air over eurozone bond deal
12:09 pm EDT, July 5th, 2012 — Angela Merkel’s crown as queen of Europe in debt crisis slips
12:10 pm EDT, July 5th, 2012 — New French government nails the rich first, will chop spending… later
One time confiscation of wealth – I think not! These citizens will leave and then the one time confiscation of wealth will move down to the next tier of French innovators and productive workers. Eventually there will be no one left to tax. I channel the redoubtable Margaret Thatcher. Cheers.
As usual the Left killing the goose that lays the golden eggs or the parasite getting too big for it’s own good and killing the host.
People with money or initiative leave, or at the very least the motivation for innovation and investment dries up or slows down.
I do believe you have the best description of Progressive Leftist Jean. They are very much like a parasite consuming its host seemingly completely lacking awareness of the eminent demise of the host.