French govt: Uhm, we really cannot afford to raise taxes any more
posted at 7:41 pm on August 23, 2013 by Erika Johnsen
Even France’s Socialist government ministers are starting to think they maybe took a wrong turn somewhere. Via the Telegraph:
France’s Socialist government has admitted that the country cannot cope with any further tax rises and promised no more hikes just days ahead of the country’s largest ever tax bill. …
Returning from their summer break, the French are about to discover stinging rises in tax bills in their letter boxes – the result of a series of new levies enacted by President François Hollande as he seeks to plug the French deficit and bring down public debt – now riding at 92 per cent of GDP. …
The total tax pressure (taxes and social security contributions) will account for 46.3 per cent of GDP this year – a historic high – compared to 45 per cent in 2012. …
Pierre Mosovici, the finance minister, told France Inter radio: “I’m very sensitive to the French getting fed up with taxes We are listening to them.” Laurent Fabius, the foreign minister followed suit, warning Mr Hollande to be “very, very careful” as “there’s a level above which we shouldn’t climb”.
Gee. I can’t imagine why an avalanche of huge taxes and supposedly one-off burdens — including one that has France’s 8,000 wealthiest families paying a top marginal tax rate of 100 percent — might have put an economic damper on things. Who could’ve seen that coming?
In addition, France’s ecology minister just announced his plans for what essentially amounts to a new carbon tax for the coming years. Impeccable timing, eh?