The London Telegraph
A poll on the front page of last Tuesday's Le Monde, that bible of the French Left-leaning Establishment, translated into stark figures the winter of François Hollande's discontent.
More than 70 percent of the French feel taxes are "excessive", and 80 percent believe the president's economic policy is "misguided" and "inefficient". This goes far beyond the tax exiles such as Gérard Depardieu, members of the Peugeot family or Chanel's owners. Worse, after decades of living in one of the most redistributive systems in western Europe, 54 percent of the French believe that taxes – of which there have been 84 new ones in the past two years, rising from 42 percent of GDP in 2009 to 46.3 percent this year – now widen social inequalities instead of reducing them.
This is a noteworthy departure, in a country where the much-vaunted value of "equality" has historically been tinged with envy and resentment of the more fortunate. Less than two years ago, the most toxic accusation levied at Nicolas Sarkozy was of being "le président des riches", favoring his yacht-sailing CEO buddies with tax breaks and sweet deals. By contrast, Hollande, the bling-free candidate, was elected on a platform of increasing state spending by promising to create 60,000 teachers' jobs, as well as 150,000 subsidized entry-level public-service jobs for the long-time unemployed and the young – without providing for significant savings elsewhere.
By 2014, France's public expenditure will overtake Denmark's to become the world's highest: 57 percent of GDP. In effect, just to keep in the same place, like a hamster on a wheel, and ensure that the European Central Bank in Frankfurt isn't too unhappy with us, Hollande now needs cash. Technocrats, MPs and ministers have been instructed to find every euro they can rake in – in deferred benefits, canceled tax credits, extra levies. As they ignore the notion of making some serious cuts (mooted at regular intervals by the IMF, the OECD and even France's own Cour des Comptes), the result can be messy.
On the one hand, the lackluster economy and finance minister Pierre Moscovici recently admitted that he "understood" the French's "exasperation" with their heavy tax burden. This earned him a sharp rap on the fingers from the president and his beleaguered PM, Jean-Marc Ayrault. On the other, new taxes keep being announced, in chaotic fashion, nearly every week. "Announced" doesn't mean "implemented": the Hollande crowd have developed a unique Wile E Coyote-style of leaks, technical glitches, last-minute tweaks and horse-market bargaining whereby almost nobody knows, at any given time, who will be targeted by the taxman, and how. Unsurprisingly, this is liked by no one except us reptiles of the press, eager to report on the longest series of own goals in the history of government communications.
Take last year's famous 75 percent supertax, on individuals earning over one million euros a month. This has still not been implemented. First, it got struck down by France's Constitutional Council on a technicality. Leaks suggested the rate would fall to 66 percent. They were confirmed, then denied. Hollande eventually vowed that the tax would be paid by the targeted individuals' employers, for daring to offer such "obscenely" high salaries. This has just been approved by the National Assembly, and must still pass the Senate. So far, it is only supposed to apply to 2013 and 2014 income, but no one knows if the bill will be prolonged, killed or transformed.
What we do know is that this non-existent (so far) tax has been the clincher that sent hundreds, possibly thousands of French citizens abroad: not just "the rich", whom Hollande, during his victorious campaign, said he personally "disliked", and who now are pushing up house prices in South Kensington and fighting bitterly over the Lycée Charles de Gaulle's 1,200 new places; but also the ambitious young, who feel that their own country will turn on them the minute they achieve any measure of personal success.
READ FULL SOURCE ARTICLE: 10/20/2013
The BasicsProject.org informational and educational pamphlet series is now available for Kindle and iPad. Click here to find out more...
The New Media Journal and BasicsProject.org are not funded by outside sources. We exist exclusively on tax deductible donations from our readers and contributors.
Please make a tax deductible donation today.