SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
France's President Francois Hollande outside the Elysee Palace in Paris on July 4, 2012. (REUTERS/Philippe Wojazer)
S'il Vous Plait: France to Tax Corporations and Wealthiest to Address Budget Gap
Jul 04, 2012
As he promised throughout his presidential campaign, Francois Hollande on Wednesday introduced a new 2012 corrective budget that calls for, among other measures, a one-off tax levy on the nation's wealthiest individuals and large corporations to help address the nation's current financial woes.
"We face an extremely difficult financial and economic situation," Finance Minister Pierre Moscovici said at a press conference in Paris. "The wealthiest households, the big companies, will be asked to contribute. In 2012 and 2013, the effort will be particularly large."
According to Reuters, the taxes on individuals will target those with net wealth of more than 1.3 million euros (or $1.63 million) and aim to raise nearly 2.3 billion euros ($2.90 billion) in this budget cycle alone. The levy focused on large banks and oil-related energy firms is designed to bring an additional 1.1 billion euros. Both increases are part of a scheme to close what the nation's state auditor says is a 6-10 billion euro budget gap in 2012. Other measures include the lifting of a payroll tax holiday and a levy on dividends and stock options.
The tax rate for those making over $1 million (1.3 million euro) will be 75% come 2013
Hollande, according to a Bloomberg report, has said the 2013 budget will restore the pre-Sarkozy wealth tax rates on people with assets of more than 1.3 million euros. That will return the rate to 75% for those making over $1 million.
It is not all good news, however, for those glad to see the wealthiest paying a larger share of the financial burden as indications from the French government acknowledge that budget cuts will also be part of an ongoing budget-trimming process. Some observers worry that one-off taxes levied on the wealthiest and the corporations do not address systemic inequities and contend that the measures are only being implemented as a way to pave a path for more public austerity.
"The immediate effort will come from tax revenues but there will be an effort on spending during the rest of the government's term," Budget Minister Jerome Cahuzac said at the news conference.
# # #
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
As he promised throughout his presidential campaign, Francois Hollande on Wednesday introduced a new 2012 corrective budget that calls for, among other measures, a one-off tax levy on the nation's wealthiest individuals and large corporations to help address the nation's current financial woes.
"We face an extremely difficult financial and economic situation," Finance Minister Pierre Moscovici said at a press conference in Paris. "The wealthiest households, the big companies, will be asked to contribute. In 2012 and 2013, the effort will be particularly large."
According to Reuters, the taxes on individuals will target those with net wealth of more than 1.3 million euros (or $1.63 million) and aim to raise nearly 2.3 billion euros ($2.90 billion) in this budget cycle alone. The levy focused on large banks and oil-related energy firms is designed to bring an additional 1.1 billion euros. Both increases are part of a scheme to close what the nation's state auditor says is a 6-10 billion euro budget gap in 2012. Other measures include the lifting of a payroll tax holiday and a levy on dividends and stock options.
The tax rate for those making over $1 million (1.3 million euro) will be 75% come 2013
Hollande, according to a Bloomberg report, has said the 2013 budget will restore the pre-Sarkozy wealth tax rates on people with assets of more than 1.3 million euros. That will return the rate to 75% for those making over $1 million.
It is not all good news, however, for those glad to see the wealthiest paying a larger share of the financial burden as indications from the French government acknowledge that budget cuts will also be part of an ongoing budget-trimming process. Some observers worry that one-off taxes levied on the wealthiest and the corporations do not address systemic inequities and contend that the measures are only being implemented as a way to pave a path for more public austerity.
"The immediate effort will come from tax revenues but there will be an effort on spending during the rest of the government's term," Budget Minister Jerome Cahuzac said at the news conference.
# # #
As he promised throughout his presidential campaign, Francois Hollande on Wednesday introduced a new 2012 corrective budget that calls for, among other measures, a one-off tax levy on the nation's wealthiest individuals and large corporations to help address the nation's current financial woes.
"We face an extremely difficult financial and economic situation," Finance Minister Pierre Moscovici said at a press conference in Paris. "The wealthiest households, the big companies, will be asked to contribute. In 2012 and 2013, the effort will be particularly large."
According to Reuters, the taxes on individuals will target those with net wealth of more than 1.3 million euros (or $1.63 million) and aim to raise nearly 2.3 billion euros ($2.90 billion) in this budget cycle alone. The levy focused on large banks and oil-related energy firms is designed to bring an additional 1.1 billion euros. Both increases are part of a scheme to close what the nation's state auditor says is a 6-10 billion euro budget gap in 2012. Other measures include the lifting of a payroll tax holiday and a levy on dividends and stock options.
The tax rate for those making over $1 million (1.3 million euro) will be 75% come 2013
Hollande, according to a Bloomberg report, has said the 2013 budget will restore the pre-Sarkozy wealth tax rates on people with assets of more than 1.3 million euros. That will return the rate to 75% for those making over $1 million.
It is not all good news, however, for those glad to see the wealthiest paying a larger share of the financial burden as indications from the French government acknowledge that budget cuts will also be part of an ongoing budget-trimming process. Some observers worry that one-off taxes levied on the wealthiest and the corporations do not address systemic inequities and contend that the measures are only being implemented as a way to pave a path for more public austerity.
"The immediate effort will come from tax revenues but there will be an effort on spending during the rest of the government's term," Budget Minister Jerome Cahuzac said at the news conference.
# # #
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.