Ndaccountant
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France announced yesterday new taxes aimed at reducing their deficit to EU standards. Some of these taxes are "in principle, one-off taxes". These taxes are only for "the rich" and big corporations, specifcally banks and oil companies.
Oil taxes - The tax will amount to 4 percent of the value of average crude and fuel stocks owned in the last three months of 2011. The tax hopes to raise 550M Euros. The targeted French oil distribution industry had a net margin of about 500 million euros last year, according to statistics from the Comite Professionel du Petrole industry.
Finacial Transaction Tax - Doubling of the tax from .01% to .02%.
Tax on Net Wealth - Already existed as the "Solidarity Tax", which taxes you based on your net wealth. New government is issuing a one-time surcharge for 2012. Most assets are exposed to the tax, with the exception of some one off things, the most important (IMO) being capital value of pensions and retirement plans (i.e., the NPV of state funded pension). Also of note is that these taxes will now apply to foreign property owners, such as Brits that have apartments, homes, cars, etc as second homes or as rent producing assets. This action has apparently got the Brits pretty upset.
Taxes for 2013 are also going up, notably 75% income tax on income above 1M euros.
Taxes as a percentage of economic output will rise to 46.5 percent in 2016 and 2017 from 43.9 percent last year. Government spending will be 56.2 percent of output this year, before declining every year to 53.4 percent in 2017. Government debt is estimated peak at 90.6 percent of the economy next year, declining to 79.6 percent in 2017. The government’s budget is counting on the economy expanding 0.3 percent this year, 1.2 percent in 2013, and 2 to 2.5 percent annually from 2014 to 2017.
For comparison sake, the World Bank figures have the USA with a 38% higher GDP per capita than France.
Oil taxes - The tax will amount to 4 percent of the value of average crude and fuel stocks owned in the last three months of 2011. The tax hopes to raise 550M Euros. The targeted French oil distribution industry had a net margin of about 500 million euros last year, according to statistics from the Comite Professionel du Petrole industry.
Finacial Transaction Tax - Doubling of the tax from .01% to .02%.
Tax on Net Wealth - Already existed as the "Solidarity Tax", which taxes you based on your net wealth. New government is issuing a one-time surcharge for 2012. Most assets are exposed to the tax, with the exception of some one off things, the most important (IMO) being capital value of pensions and retirement plans (i.e., the NPV of state funded pension). Also of note is that these taxes will now apply to foreign property owners, such as Brits that have apartments, homes, cars, etc as second homes or as rent producing assets. This action has apparently got the Brits pretty upset.
Taxes for 2013 are also going up, notably 75% income tax on income above 1M euros.
Taxes as a percentage of economic output will rise to 46.5 percent in 2016 and 2017 from 43.9 percent last year. Government spending will be 56.2 percent of output this year, before declining every year to 53.4 percent in 2017. Government debt is estimated peak at 90.6 percent of the economy next year, declining to 79.6 percent in 2017. The government’s budget is counting on the economy expanding 0.3 percent this year, 1.2 percent in 2013, and 2 to 2.5 percent annually from 2014 to 2017.
For comparison sake, the World Bank figures have the USA with a 38% higher GDP per capita than France.
