FT: Sarko raises taxes on the wealthy - Spear's Magazine

FT: Sarko raises taxes on the wealthy

French president Nicolas Sarkozy has given the green light for a highly political budget, placing the burden of new revenue raising on the richest and on big companies while preserving the benefits of some tax breaks for ordinary workers

French president Nicolas Sarkozy has given the green light for a highly political budget, placing the burden of new revenue raising on the richest and on big companies while preserving the benefits of some tax breaks for ordinary workers.

Just nine months away from a presidential election, France’s high earners will face higher taxes as the government seeks some €12bn in extra revenue by the end of next year to help bring public finances under control.

Mr Fillon said the measures would raise an extra €1bn this year, in addition to the previously announced €3bn in extra revenues, and a further €11bn in 2012. Under the plan, a temporary 3 per cent tax will be levied from this year on all incomes above €500,000, while the social charges on capital income will be increased. The two measures will bring in an extra €1.5bn by 2012.

Gains on property investments, excluding primary residences, will also be taxed more heavily, bringing a considerable €2.2bn in extra revenue next year.

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