Skip to comments.Eurozone Crisis Live: France Hikes Taxes In Tough Budget
Posted on 09/28/2012 4:33:13 AM PDT by lbryce
Prime Minister Jean-Marc Ayrault declared that today's French budget will put France back on its feet. Here's the key quotes:
This is a fighting budget to get the country back on the rails.
It is a budget which aims to bring back confidence and to break this spiral of debt that gets bigger and bigger.
Ayrault also described the target of 0.8% GDP growth next year as "realistic and ambitious".
Today's French budget contains around 20bn of new taxes, broadly as expected. It's interesting that the most controversial measure, the 75% tax on the wealthy, is only expected to raise 210m.
Change's to France's wealth tax will bring in almost five times as much.
How credible is the prediction that the French economy will grow by 0.8% next year? Well, it's in line with the latest IMF forecast, made in July.
However, it would probably be too optimistic if the eurozone crisis were to escalate.
FRENCH BUDGET DETAILS
The first details of the French 2013 budget are out now!
Moderator:This image is taken from the NYT site and is not the one credited o Getty. Thank You.
Dr Paul Krugman, 2008 Nobel Laureate, speaks at a press conference held by the Securities and Futures Commission (SFC) in Hong Kong on May 22, 2009 Dr Paul Krugman, 2008 Nobel Laureate. Photograph: MIKE CLARKE/AFP/Getty Images
Economics professor Paul Krugman (the Keynesian's Keynesian) has blasted Europe for its austerity fetish.
In a new column for the New York Times called Europes Austerity Madness, Krugman;
Spain didnt get into trouble because its government was profligate. On the contrary, on the eve of the crisis, Spain actually had a budget surplus and low debt. Large deficits emerged when the economy tanked, taking revenues with it,
(Excerpt) Read more at guardian.co.uk ...
No, the Doctor's diagnosis on the state Spain and of European Socialism is that it's doing fine.
Wikipedia: History of the European Union
After World War II, moves towards European integration were seen by many as an escape from the extreme forms of nationalism that had devastated the continent. One such attempt to unite Europeans was the European Coal and Steel Community, which was declared to be "a first step in the federation of Europe", starting with the aim of eliminating the possibility of further wars between its member states by means of pooling the national heavy industries. The founding members of the Community were Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. The originators and supporters of the Community include Jean Monnet, Robert Schuman, Paul-Henri Spaak, and Alcide De Gasperi.
Sacre Bleu! It is kind of ironic that France grappling with its largest budget crisis in decades, was the prime mover and promulgator of the EU, a lot to do with competing with the dollar, the U.S.
someone needs to post the breadlines from communist Russia..to show how well government does the job. thats what food stamps are..modern day bread line
France doesn't just tax income, it also taxes your ASSETS. If you have money, THEY TAKE SOME OF IT, EVERY YEAR!
This is where the USA is heading. The spendaholic Liberals will never stop their insanity until they tax us at 100% of income & tax away our saving & investments until we have nothing.
At that point, the gov’t owns everything, the hallmark of Communism.
If Obama wins a second term you can bet the house that all private retirement accounts will be nationalized.
Do I really need a /sarc?
I don't believe they could get away with that, politically or legally, but as John Roberts has shown, Congress can tax anything, including your refusal to buy something. Taxing personal assets is a no-brainer for the spendaholics.
Paul Krugman is real smart, don’t you know. He won the grand prize on America’s Funniest Videos for figuring out that eight bits usually makes a dollar.