French Socialists eye tax rises after big poll win

Reuters ^ | Mon Jun 18, 2012 1:44pm EDT | Daniel Flynn and Jean-Baptiste Vey

[Hunton Peck]

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.

Ahead of the vote, Hollande's government had insisted it could meet its deficit targets with only minor cuts to administrative spending, without resorting to the kinds of austerity programs seen in recession-stricken Greece or Spain.

Appearing to brace French voters for tough measures, however, Interior Minister Manuel Valls said on Monday that meeting France's EU commitments would involve sacrifices.

"We need to sort out this country. Every Frenchman will need to make an effort but fairly, via tax reforms. It will be difficult but that is the task facing us," Valls told RTL radio.

France has one of the highest levels of government expenditure in Europe and posted a budget deficit of 5.2 percent of GDP last year.

Prime Minister Jean-Marc Ayrault is due to outline the...

[PGR88]

Go for it!! I’m short the Euro!

[mkmensinger]

“promises to cut the budget deficit, mostly through taxation increases”

Yeah, that’ll work just great.

[bill1952]

You cannot tax your way out of a depression.
Or, anything else.
You CAN tax & spend your way into one rather easily, but the statement stands as A Priori Fact

[Brilliant]

Can’t wait.

[stevem]

They oght to increase taxes to 100% on everyone.

[mrsmith]

“TAXES FOR GROWTH!”????????

Hmmm...

Goes so well with media’s “DEBT FOR GROWTH!” meme from last month!

[Tench_Coxe]

France goes full retard....

[Hotlanta Mike]

The HOLLANDE YOUTH MOVEMENT....

[MHGinTN]

I'm jealous, their radicals look better than ours, bathed and coiffed even.

[Hunton Peck]

Looks like they’re all ready to lewinski Francois in return for other people’s stuff.

[vpintheak]

Enjoy your socialism France! There are lots of poor helpless muslims and various other bums that need your money!

[St_Thomas_Aquinas]

——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.-——

The old static tax revenue analysis.

Socialists never learn. Oh well.

[MrEdd]

Why do their signs picture large dog turds?

[Forrestfire]

MHG
They are not radicals!! They are takers! They will turn into radicals only when there is nothing left to give them!! And my guess is that that will come shortly after massive tax increases on the doers!!!

[MHGinTN]

A variation on the little barry bastard commie logo perhaps?

[RetiredArmy]

I hope the stinking french get taxed into the deepest hole they can dig. The idiots asked for it, and I hope they get it. They have destroyed their country by allowing the Izzies to take over. The UK is also doing the same thing as is the remainder of Europe. These morons just do not understand the enemy. That is why france has lost every war they fight. Stupid is as stupid does. Enjoy total destruction of your nation france.

[RetiredArmy]

I hope the stinking french get taxed into the deepest hole they can dig. The idiots asked for it, and I hope they get it. They have destroyed their country by allowing the Izzies to take over. The UK is also doing the same thing as is the remainder of Europe. These morons just do not understand the enemy. That is why france has lost every war they fight. Stupid is as stupid does. Enjoy total destruction of your nation france.

[RetiredArmy]

I hope the stinking french get taxed into the deepest hole they can dig. The idiots asked for it, and I hope they get it. They have destroyed their country by allowing the Izzies to take over. The UK is also doing the same thing as is the remainder of Europe. These morons just do not understand the enemy. That is why france has lost every war they fight. Stupid is as stupid does. Enjoy total destruction of your nation france.

[353FMG]

>You cannot tax your way out of a depression.<

.
Pssst — don’t tell the socialists. You’re wasting your time.