SEARCH BLOG: HOLLANDE
From The Wall Street Journal:
PARIS—French President François Hollande on Sunday sought to brace the nation for its toughest budgetary effort of the past six decades, as he outlined a raft of austerity measures—including a controversial tax on the rich—to shore up public finances.
In a television interview, Mr. Hollande said he has given himself two years to turn around France's economy and acknowledged the gravity of that task. He said the country's growth prospects have clearly deteriorated and significantly downgraded the growth forecasts to "barely above zero" for this year and "about 0.8%" for 2013.
France's first Socialist president in 17 years used his prime-time television slot to seek to counter criticism that he is moving too slowly to fix France's problems and that he has failed to be decisive.
"I'm not going to do in four months what my predecessors haven't done in five or 10 years," said Mr. Hollande. "I am in combat mode." He said he was "accelerating things."If we look at the plan, it has elements called for by the U.S. progressives and conservatives:
Mr. Hollande said his government would propose a budget this month packed with as much as €20 billion ($25.6 billion) in new taxes and €10 billion in spending cuts. He confirmed that the budget will include a special 75% tax for people earning more than €1 million a year that has fanned fears of an exodus of France's wealthiest citizens. [full article]
- Cut spending
- Increase Taxes
What about the U.S.? Obama will be re-elected on promises of more spending [maybe a "quantitative easing 4"] and higher taxes for those making more than $250,000. The U.S. economy will continue to languish.
The French tax office doesn't disclose data on French fiscal residents moving abroad, a spokesman said, citing the fact that tax is a confidential matter. But private bankers and tax lawyers around the country have spoken of a surge in requests from clients to help them relocate abroad.
"A lot of people have already left," said Arnaud Jamin, a tax lawyer at Fidal Associés law firm in Paris. He said the 75% tax rate "will be an additional signal to those who have a certain wealth, substantial income and who more and more tend to see themselves as persecuted by the administration."Wonder where they are going? Wonder where we will go?