France taxes rich and business to slash deficit
By Daniel Flynn and Leigh Thomas
PARIS | Fri Sep 28, 2012 7:49am EDT
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(Reuters) – President Francois Hollande’s Socialist government unveiled sharp tax hikes on business and the rich on Friday in a 2013 budget aimed at showing France has the fiscal rigor to remain at the core of the euro zone.
The package will recoup 30 billion euros ($39 billion) for the public purse with a goal of narrowing the deficit to 3.0 percent of national output next year from 4.5 percent this year – France’s toughest single belt-tightening in 30 years.
But with record unemployment and a barrage of data pointing to economic stagnation, there are fears the deficit target will slip as France falls short of the modest 0.8 percent economic growth rate on which it is banking for next year.
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Here’s a country that’s going be a laboratory for high tax rates.
Better them than us.
The USA has growth rate below 2 and the true unemployment rate (U6) above 15%.
The Gooferment deficit, debt, and spending are spinning out of control; the Senate doesn’t even deign to do a budget.
I’m no fan of either party’s offering. But four more years of European style Gooferment is going to push the economy over the edge.
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