EU: French business erupts in fury against "disastrous" Hollande

[ScienceRocks]

EU: French business erupts in fury against "disastrous" Hollande
The Telegraph ^ | 10/15/2012 | Ambrose Evans-Pritchard

French business erupts in fury against "disastrous" Hollande - Telegraph

France is sliding into a grave economic crisis and risks a full-blown “hurricane” as investors flee rocketing tax rates, the country’s business federation has warned.



Francois Hollande is tightening fiscal policy by 2pc of GDP next year to meet EU deficit targets


“The situation is very serious. Some business leaders are in a state of quasi-panic,” said Laurence Parisot, head of employers’ group MEDEF.

“The pace of bankruptcies has accelerated over the summer. We are seeing a general loss of confidence by investors. Large foreign investors are shunning France altogether. It’s becoming really dramatic.”

MEDEF, France’s equivalent of the CBI, said the threat has risen from “a storm warning to a hurricane warning”, adding that the Socialist government of François Hollande has yet to understand the “extreme gravity” of the crisis.

The immediate bone of contention is Article 6 of the new tax law, which raises the top rate of capital gains tax from 34.5pc to 62.2pc. This compares with 21pc in Spain, 26.4pc in Germany and 28pc in Britain.

“Let’s be clear, Article 6 is not acceptable, even if modified. We will not be complicit in a disastrous economic mistake,” Mrs Parisot told Le Figaro.

An alliance of private organisations in France has issued a protest entitled “State of Emergency for Business”, warning that confiscatory tax rates threaten lasting damage to French economy.

Mrs Parisot said the policies border on economic illiteracy: “The idea of aligning taxes on capital with those on wages is a profound economic error. It is scandalous that the French have been left in such economic ignorance for years.”

French business has called for “competiveness shock” of business tax cuts to claw back lost ground against Germany. Instead, it faces an extra €10bn (£8.1bn) of business costs from the budget

This is what Obamas policies would do if the republicans weren't there.

 

[ScienceRocks]

A line for Romney at tomorrow’s debate...

“Mr. President, the French version of you is currently destroying France’s economy by demonizing job creators and taxing them to fund a vast welfare state.


This would be a winner!

 

[auditor0007]

EU: French business erupts in fury against "disastrous" Hollande
The Telegraph ^ | 10/15/2012 | Ambrose Evans-Pritchard

French business erupts in fury against "disastrous" Hollande - Telegraph

France is sliding into a grave economic crisis and risks a full-blown “hurricane” as investors flee rocketing tax rates, the country’s business federation has warned.



Francois Hollande is tightening fiscal policy by 2pc of GDP next year to meet EU deficit targets


“The situation is very serious. Some business leaders are in a state of quasi-panic,” said Laurence Parisot, head of employers’ group MEDEF.

“The pace of bankruptcies has accelerated over the summer. We are seeing a general loss of confidence by investors. Large foreign investors are shunning France altogether. It’s becoming really dramatic.”

MEDEF, France’s equivalent of the CBI, said the threat has risen from “a storm warning to a hurricane warning”, adding that the Socialist government of François Hollande has yet to understand the “extreme gravity” of the crisis.

The immediate bone of contention is Article 6 of the new tax law, which raises the top rate of capital gains tax from 34.5pc to 62.2pc. This compares with 21pc in Spain, 26.4pc in Germany and 28pc in Britain.

“Let’s be clear, Article 6 is not acceptable, even if modified. We will not be complicit in a disastrous economic mistake,” Mrs Parisot told Le Figaro.

An alliance of private organisations in France has issued a protest entitled “State of Emergency for Business”, warning that confiscatory tax rates threaten lasting damage to French economy.

Mrs Parisot said the policies border on economic illiteracy: “The idea of aligning taxes on capital with those on wages is a profound economic error. It is scandalous that the French have been left in such economic ignorance for years.”

French business has called for “competiveness shock” of business tax cuts to claw back lost ground against Germany. Instead, it faces an extra €10bn (£8.1bn) of business costs from the budget

This is what Obamas policies would do if the republicans weren't there.

While I have heard many support raising the capital gains tax, nobody that I know of has ever suggested raising to over 60%. Personally, I think it should be raised to 25% but no higher. Obama has called for a raise to 20%. So basically, your statement is a crock of shit.

 

[Claudette]

Well France put the Socialists back in power because the do so love that Nanny State.

Can't say I have any sympathy for em. Socialism works great till you run out of other peoples money.

No businesses. No jobs. No money. Guess you get off your ass and take care of yourself when that happens.

Hell. I won't even wish em good luck. Idiots.