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France Taxes ‘Rich’ ($194K), Freezes Spending

From a giddy Reuters:

France taxes rich and business to slash deficit

By Daniel Flynn and Leigh Thomas | Fri September 28, 2012

PARIS (Reuters) – President Francois Hollande’s Socialist government unveiled sharp tax hikes on business and the rich on Friday in a 2013 budget aimed at showing France has the fiscal rigor to remain at the core of the euro zone.

We will have to wait until the 13th paragraph of this article to learn that "the rich" now means anyone making over 150,000 euros, which is $193,830 dollars.

The package will recoup 30 billion euros ($39 billion) for the public purse with a goal of narrowing the deficit to 3.0 percent of national output next year from 4.5 percent this year – France’s toughest single belt-tightening in 30 years.

"Recoup"? Here is how the Oxford English Dictionary defines ‘recoup': "To recompense (a person) for (some loss or outlay); to make up or make good (loss, etc.) to (a person)." — So, apparently, this money really belonged to the government in the first place.

But with record unemployment and a barrage of data pointing to economic stagnation, there are fears the deficit target will slip as France falls short of the modest 0.8 percent economic growth rate on which it is banking for next year.

0.8% growth is not growth if there is any inflation over 0.8%. And, according to the AP, the current inflation in the ‘Eurozone’ is 2.7%.

The budget disappointed pro-reform lobbyists by merely freezing France’s high public spending rather than daring to attack ministerial budgets as Spain did this week as it battles to avoid the conditions of an international bailout

So after promising that he would cut government spending to make his tax increases, Mr. Hollande froze spending at its current impossibly high levels. That sounds just like the socialists Democrats in our country.

To the dismay of business leaders who fear an exodus of top talent, the government confirmed a temporary 75 percent super-tax rate for earnings over one million euros and a new 45 percent band for revenues over 150,000 euros [$193,830].

So it’s not just millionaires who are being taxed. People not even making $200,000 are getting hit with a 45% rate.

Together, those two measures are predicted to bring in around half a billion euros.

Which is a whopping "half billion euros" [$646,100,00], which is chicken feed. And that is only if people don’t stop making as much money, or don’t start hiding their income, or don’t move. Which they are already doing in droves.

Higher tax rates on dividends and other investments, plus cuts to existing tax breaks are seen bringing in several billion more.

And that is if people don’t stop investing, and businesses don’t fire people and cut back in general. And that consumer spending doesn’t drop. — All of which usually happens when taxes are jacked up so radically.

Business will be hit with measures including a cut in the amount of loan interest which is tax-deductible and the cutting of an existing tax break on capital gains from certain share sales – moves worth around four billion and two billion euros each

This is what happens when you elect a socialist. Just as we are finding out. And we will see even more if Obama is re-elected.

Data on Friday confirmed France posted zero growth in the second quarter, marking nine months of stagnation, as a pickup in business investment and government spending was offset by a worsening trade balance and sluggish consumer expenditure…

Don’t worry. Punishing ‘the rich’ will soon set things right.

This article was posted by Steve Gilbert on Friday, September 28th, 2012. Comments are currently closed.

8 Responses to “France Taxes ‘Rich’ ($194K), Freezes Spending”

  1. ilzito guacamolito

    These leftists/socialists/progressives slay me no matter the country they are attempting to destroy. Why not just confiscate everyone’s money? Won’t that work?

  2. Rusty Shackleford

    You can do this only one time.

    Then you will go right back to being fiscally broke.

    The producers will leave/stop producing and the government will be left holding the bag again.

    Ask any nation that has confiscated the wealth of its citizens.

    Fortunately, there were those who saw it coming and moved before it was passed into law.

    But I fear the same thing for this nation. “Oh, you have money…we’ll need that to pay for those who don’t”. That will put me into a situation where I will no longer work to feed the government and let the government provide me with my minimums in the second half of my life.

    The human nature logic of it is inescapable.

  3. Notice the typical media bias. France isn’t raising taxes, it is cutting tax breaks. I don’t know how many psycholinguists work at Reuters these days, but the agenda is damn near obvious. It’s also obvious that we are being prepared for similar action here at home, and we should be glad there will be cuts (to our tax breaks) and a freeze on spending (at levels that are already responsible for 5+ trillion in new debt over less than 4 years)

    The other thing that is patently obvious is that the media elite think the entire American electorate is too stupid to understand what comes with 4 more years of Oblameless. I sincerely hope they’re wrong.

  4. ilzito guacamolito

    ~ So after promising that he would cut government spending to make his tax increases, Mr. Hollande froze spending at its current impossibly high levels. That sounds just like the socialists Democrats in our country. ~

    Only a leftist sees a spending freeze as a cut, so Hollande thinks he is cutting spending.

  5. mr_bill

    The sad thing here is that liberals will still insist this works, even after it fails in France.

    • Rusty Shackleford

      It is remarkable, isn’t it? How the emotions of socialists who think that taking from the rich and giving it to the poor will solve everything?

      Most of us here know that joke about the girl who comes home from college and had straight A’s and her dad had to explain socialism to her.

      to me, being human means being able to use the greatest gift that god has given us: The ability to think and not just be instinctive mammals looking to mate and eat. But it would appear that there are many, many humans who desire to only do just that. Constantly plug their brain into the emotional stimulator for another case of “mental masturbation”. Go green..it will make you feel good about yourself. Criticize conservatives, they only want to take things away from everyone else! And so on.

      Not one ounce of logical, emotionally restrained reasoning. None. I had often heard, from my teachers and parents, “It’s like talking to a three-year-old” in frustration but nowadays, it really is. Liberals, AKA the new socialists of our time, actually believe that industry is evil, conservatives want everyone chained to a bible and that conservatives believe slavery of blacks was a good thing.

      But here’s the catch: When the mouse is in the lab, and has two levers to choose from, one that dispenses cocaine and the other food, the mouse will choose the cocaine every time until it kills itself. So it is with satisfying the emotional center which, by design, is not going to ever be satisfied. That is why people take up a hobby and continue to do it. Go to movies, read, play sports, etc. The pleasure center is stimulated and the chemical it uses is…ta-daaaaa….very similar to cocaine but….in such small doses it’s almost immeasurable. But socialist/lefties are addicts.

      They get their emotional centers worked up by acting as they do. It causes that center of their brain to get the drug. They don’t realize this. Since half of our population is like this to some degree, it’s interesting to note how addictive the human dopamine drug is. Runners have often talked about the “high” they experience when they run.

      Cocaine, however permanently damages the pleasure center of the brain.

      But this doesn’t mean that people can’t become addicted to their own hormones. And, the “pleasure center” is not a center at all but several regions of the brain that are stimulated in various ways. But I still submit that socialists get their jollies and a virtual high by acting the way they do.

      I say this because I have noticed how…say…in a whale-watching show, how the divers were ridiculously animated by being that close to whales in the water. To me, I would be pleased, but not in the semi-orgasmic state they were in. “Hm, whales…big…impressive. Kinda neat”.

      So, where am I going with this? Lefties are over-emotional twits and over-emotion equates to immature personalities, petulance, pettiness, gossip, you-name-it. Satisfaction is derived from hurting someone. Especially someone who is recognized as “the enemy”. Most of them probably belong in heavy psychoanalysis.

      I also happen to think many of them are both psychotic and certifiable. It has been said that everyone has their own psychosis. But it’s a matter of degree and when people prefer to hit the lever for the free cell phone instead of the self-sufficiency lever, well….


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