French budget breaks promise on tax rises with €3m increase
Wednesday 25 September 2013
The French government has unveiled its 2014 budget which breaks an earlier promise to halt rising taxes for the French, weighed down by one of the highest tax burdens in the world.
Highlighting the gap between rhetoric and reality, the budget was officially described as “setting a course towards growth and jobs”. It laid down spending cuts of €15bn aimed at curbing the deficit, essentially from savings in the benefits and pensions sectors. But it also includes €3m in tax rises.
French households will be affected by a planned rise in VAT to a top rate of 20 per cent from. Experts are sceptical that credits put in place to boost hiring and spare lower-income earners from more tax pain would be sufficient to generate growth. French productivity is stagnating and predicted to reach only 0.8 per cent in 2014 according to the Organisation for Economic Co-operation and Development.
President François Hollande has acknowledged that the French are fed up with high taxes and last month promised a “fiscal pause” in 2014. Acknowledging the U-turn, Prime Minister Jean-Marc Ayrault accepted “full responsibility for having to raise taxes”. The budget revealed the country’s debt will rise to an unprecedented 95.1 per cent of GDP in 2014.
“The problem is that it’s a government which doesn’t like cutting the privileges of civil servants,” said the president of the Associated Taxpayers organisation, Alain Mathieu.
- 1 'Cheeky' Nando's under fire for apparently coming onto a customer on Twitter
- 2 Saudi Arabia mosque bombing: Two volunteer security guards hailed as heroes for stopping Isis suicide bomber reaching worshippers
- 3 Playboy model April Summers speaks out about being a victim of revenge porn
- 4 There is something wrong but very right about this Bible illustration
- 5 iPhone 'effective power' text: how to be safe from iOS bug that lets people crash your phone
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
A nation of inequality: How the UK is failing to feed its most vulnerable people
Australian man punched in the face for defending Muslim women from abuse on train
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
£16500 - £18500 per annum: Recruitment Genius: One of the leading Mercedes-Ben...
£27500 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£19500 - £23500 per annum: Recruitment Genius: Experienced B2B Telemarketer wa...
Negotiable: Recruitment Genius: This global company are looking for two Showro...