France’s economic troubles deepen

World Today

Tax troubles for Europe’s second biggest economy, France. The French government came up 19 billion dollars short after overestimating its 2013 tax income. They were expecting to raise more than double that – around 40 billion dollars. President Hollande’s austerity measures included tax hikes on income, corporations, goods and services. The main opposition party, U-M-P, claims overtaxing actually causes tax revenue to drop. It also hurts France’s prospects for a sustained economic recovery.

Former UMP Budget Minister Eric Woerth said “The more you raise taxes, the more you send a signal to households to save money in order to pay their taxes”.
For an in-depth look at France’s economy, we welcome Jacob Kirkegaard, Economist and Senior Fellow at the Peterson Institute For International Economics.

France's economic troubles deepen

France's economic troubles deepen

Tax troubles for Europe's second biggest economy, France. The French government came up 19 billion dollars short after overestimating its 2013 tax income. They were expecting to raise more than double that - around 40 billion dollars. President Hollande's austerity measures included tax hikes on income, corporations, goods and services. The main opposition party, U-M-P, claims overtaxing actually causes tax revenue to drop. It also hurts France's prospects for a sustained economic recovery. Former UMP Budget Minister Eric Woerth said "The more you raise taxes, the more you send a signal to households to save money in order to pay their taxes". For an in-depth look at France's economy, we welcome Jacob Kirkegaard, Economist and Senior Fellow at the Peterson Institute For International Economics.
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