Francois Hollande Raises Tax on Rich, Companies to Cut French Deficit

[marmar]

(Bloomberg) President Francois Hollande’s first annual budget raised taxes on the rich and big companies and included a minimum of spending cuts to reduce the deficit.

The 2013 blueprint relies on 20 billion euros ($26 billion) in tax increases, including a levy of 75 percent on incomes over 1 million euros, and eliminating limits on the wealth tax. Hollande aims to reduce spending by 10 billion euros, bringing the deficit to 3 percent of output from 4.5 percent in 2012. The budget predicts growth of 0.8 percent.

“It’s true we’re asking for an effort of the richest, the top 10 percent and the top 1 percent in particular,” Prime Minister Jean-Marc Ayrault said today. “Big companies of the CAC 40 pay less than the small companies and sometimes don’t pay at all. So we’re asking them for an effort too.”

France has a financing requirement of 171.1 billion euros in 2013, down from 182.8 billion euros in 2012, Agence France Tresor said in a simultaneous release. The debt agency said bond issuance alone would total 170 billion euros next year, down from 178 billion euros this year. ....................(more)

The complete piece is at: http://www.bloomberg.com/news/2012-09-27/hollande-readies-tax-raising-budget-in-bid-to-cut-french-deficit.html

[xchrom]

1. du rec. Nt

[Overseas]

2. K&R. Glad to hear it.

[tosh]

3. THIS is how it's done.

K&R.

[FailureToCommunicate]

4. Wouldn't his budget still need to get approved?

Still, it is pointed in the right direction.

[marmar]

5. Probably, but I believe he has a strong parliamentary majority......

....... so it's just a formality.

[porphyrian]

6. I hope this empirically calls bullshit on the austerity lie. n/t

[reformist2]

12. Yep. There are tens of trillions in wealth out there, no need for austerity.

In the US alone, wealthy households hold more than $50 trillion in assets. Anyone who says "but we're broke!", correct them of this falsehood immediately.

[porphyrian]

13. Well, statistically, "we're broke" is still true, but you are correct. n/t

[reformist2]

14. The government is broke, but we, as a nation, are not.

That's the difference. As they "starve the beast," the rich grow richer than ever. People need to see how these are two sides of the same coin.

[porphyrian]

15. I meant that most people are broke and the wealth lies in the hands of a few, but we're agreeing.n/t

[reformist2]

16. Sorry. I was just pontificating. ;)

[porphyrian]

17. Good stuff to say, keep going. n/t

[efhmc]

7. Tres bien.

[mountain grammy]

8. Well, duh....

The Euro zone and countries turning control of their own money supply to bankers hasn't worked out so well for most of the countries. It has, however, made for some mighty rich bankers amassing huge fortunes off the misery of others, and, as we know so well, all the money concentrated at the top benefits only a very few. The answer is clear; when the money is all redistributed to the top, it should be taxed and redistributed to all.

[fasttense]

9. When the filthy rich and corporations are NOT taxed enough,

They put their money in quick return, over night schemes like Bain capital. The money is flowing, they have no concerns about losing value if they pull their money out of investments. They rapidly move their money from one fast return investment to another. Then bubbles and crashes come rapidly.

If their money is heavily taxed, they tend to leave the money in businesses and invest in more secure, less risky ventures. They know they will lose some of the value through taxes if they constantly move it around and they don't have as much ready cash to waste on risky ventures. More stable and cool headed investment strategies are used when the excessively wealthy are made to pay their fair share in taxes. The fair share the filthy rich pay in taxes should equal the percent of the wealth they hold.

[JDPriestly]

18. Right, fasttense.

That is precisely how it works. Believe it or not, there can be too much money available for investment. And if the demand for products and services cannot absorb the products and services that the excess investment money produces, then you get gambling and racing after illusory profits.

That's one of the reasons that bubbles occur. The amount of money available for investment exceeds the amount of money that can be, in the long-term, profitably invested.

And, that is why Democrats' economic theories work and Republican ones don't.

[Lawlbringer]

10. It's always been said

That with great power comes great responsibility.

Sure, it's a line from fiction, but that shouldn't take away from it.


The rich have become rich for whatever reason, through inheritance, hard work, scamming, etc. They are in a position of influence and power. How can they use it? If they're not doing so of their own free wills, then fine, let someone step in and FORCE them for the greater good.

[reformist2]

11. More on the Wealth Tax:

http://en.wikipedia.org/wiki/Solidarity_tax_on_wealth#2008_rates