Francois Hollande is tightening fiscal policy by 2pc of GDP next year to meet EU deficit targets
Posted on 10/15/2012 10:17:08 PM PDT by bruinbirdman
France is sliding into a grave economic crisis and risks a full-blown “hurricane” as investors flee rocketing tax rates, the country’s business federation has warned.
Francois Hollande is tightening fiscal policy by 2pc of GDP next year to meet EU deficit targets
“The situation is very serious. Some business leaders are in a state of quasi-panic,” said Laurence Parisot, head of employers’ group MEDEF.
“The pace of bankruptcies has accelerated over the summer. We are seeing a general loss of confidence by investors. Large foreign investors are shunning France altogether. It’s becoming really dramatic.”
MEDEF, France’s equivalent of the CBI, said the threat has risen from “a storm warning to a hurricane warning”, adding that the Socialist government of François Hollande has yet to understand the “extreme gravity” of the crisis.
The immediate bone of contention is Article 6 of the new tax law, which raises the top rate of capital gains tax from 34.5pc to 62.2pc. This compares with 21pc in Spain, 26.4pc in Germany and 28pc in Britain.
“Let’s be clear, Article 6 is not acceptable, even if modified. We will not be complicit in a disastrous economic mistake,” Mrs Parisot told Le Figaro.
An alliance of private organisations in France has issued a protest entitled “State of Emergency for Business”, warning that confiscatory tax rates threaten lasting damage to French economy.
Mrs Parisot said the policies border on economic illiteracy: “The idea of aligning taxes on capital with those on wages is a profound economic error. It is scandalous that the French have been left in such economic ignorance for years.”
French business has called for “competiveness shock” of business tax cuts to claw back lost ground against Germany. Instead, it faces an extra €10bn (£8.1bn) of business costs from the budget
(Excerpt) Read more at telegraph.co.uk ...
No surprises here.
A line for Romney at tomorrow’s debate...
“Mr. President, the French version of you is currently destroying France’s economy by demonizing job creators and taxing them to fund a vast welfare state.
Coming soon to a nation near you.
His campaign was actually managed by Ivy League kiddie Obamabots, as a mirror to his 2008 “Hope” campaign. Good job A-holes.
His campaign slogan was “Change now”. Remember Hope, Change?
Socialism at work.......and here we have a dumb a$$ who desperately attempts to try the same thing. Just can’t help thinking there must be something in the water..by now you would think that people have figured out what works and what doesn’t ? In the picture he looks intelligent, but judging from his actions there must lay a waste land of garbage between his ears.
Last I heard, Hollande was talking about raising the top tax rate to 70%. I think Obama is talking about restoring it to the the pre-Bush tax cut rate of 39.5%
When things fall apart and France’s government try to take over all elements of society there will be want and riots. Look to see students rise first—then labor unions. I give him a year.
If reelected Obama wouldn’t hestitate to bail them out.
Coming soon to a nation near you.
OUI,
LE FRANÇAIS
QU’EST-CE UNE COLLECTION D’ÂNES STUPIDE.
Que leur EXEMPLE Deviens un avertissement pour vous AMÉRIQUE! **
** AH YES, FRANCE....WHAT A COLLECTION OF STUPID DONKEYS.
LET THEIR EXAMPLE BE A WARNING TO YOU AMERICA!
Hollander was the glue supposed to fully meld France ingot he EU.
The Frogs have slowly had the water temp increased on them..and are about “done”
Hollande. Into..........geez. Posting while decaffeinated!!
It is actually 75% from what is now 41% but it is far uglier than that simple ingot. http://en.wikipedia.org/wiki/Taxation_in_France
By your reference to the 39.5% as a comparison you seem to imply that is no big deal. What you miss is all of the regulations that are a hidden tax on all producers and especially consumers. You must remember one inescapable fact, corporations don’t pay taxes, their customers do. Taxes are a cost of doing business, period. So when you advocate a little raise in the upper rates in this country, you are in essence advocating for a tax in crease on everything you buy.
All the while, the fixed income tax rate in Russia for individuals is a flat 13%, and look how their economy is doing. The maximum for business is 20% but that is not important enough for the press to report now, is it?
http://www.worldwide-tax.com/russia/russia_tax.asp
Mmmmmm. French suffering. Mmmmmmm.
Their tears taste so yummy. Mmmmmm.
Last I heard, Hollande was talking about raising the top tax rate to 70%. I think Obama is talking about restoring it to the the pre-Bush tax cut rate of 39.5%
Yes, Obama's going to raise taxes by letting the Bush tax cuts expire. Raising them beyond this level would require the cooperation of Congress and while I have no doubt Boehner would eventually sell out the American people, he won't at first. This means the most Obama can do is raise personal, cap gains, and dividend taxes.
Don't think for a minute that Obama wouldn't raise taxes past the 70% mark. People forget, but that's where taxes were before Reagan. Before the Kennedy tax cuts, they were in the 90% range.
Romney speaks French and perhaps the morning of Wednesday, Nov. 7 would be a great time to invite all of France’s businesses to relocate here. Like a Louisiana Repurchase. We could relocate them to a place we call New Sans Hollande.
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