Skip to comments.Sacre Bleu! To Combat Slow Economic Growth, French President Hollande … RAISES Taxes!
Posted on 09/30/2013 10:54:58 AM PDT by whitedog57
Frances Socialist President Francois Hollande decides to combat a faltering economy by RAISING taxes. Seriously. Then again, President Obama is raising taxes massively in the US, mostly through Obamacare.
The French government unveiled a 2014 budget Wednesday that continues to rely on higher taxes, threatening to further dent household spending power and economic growth, as well as President François Hollandes record low popularity.
Faced with growing discontent over high taxation, Mr. Hollandes government emphasized efforts in the budget to improve Frances public finances by curbing spending. But net new taxes are still set to increase by 3 billion, with households shouldering the greatest burden, including an increase in the sales tax.
The measures add to a tax burden that is already among the highest in Europe and are likely to weigh on the modest recovery in France, the eurozones second-largest economy, where households account for the largest component of gross domestic product.
French companies and households have been hit hard by a steady increase in taxation since Mr. Hollande was elected 16 months ago. He introduced more than 7 billion ($9.3 billion) of fresh taxes after coming to power and another 20 billion in the 2013 budget, in a bid to restore Frances public finances and rein in its budget deficit.
At least Frances real GDP growth is back in positive territory, although +0.4% growth is nothing to cheer about.
Like the US, France has been running budget deficits as far as the eye can see. The red line indicates a balanced budget.
Frances unemployment rate is running 10.90%.
Frances gross fixed capital investment has been falling recently.
And France better keep their sovereign rates low because look out for debt maturing in 2014.
I wish France well under the leadership of Hollande.
How’s the Total Revenue working out for them?
To a hammer then entire world looks like a nail.
Give an example of any country that experienced economic growth as a result of raising taxes.
Take away money from rich (taxes) and give it to poor lazy leaches, they will get eeeeconomy moving by buying dope.
Keeep it up so the French can bring back Sarkosy—or LePen. These fools will make the French hate socialism.
Well, of course! The People obviously aren’t spending their money right. Things will work out much better if the Government does it for them. :)
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