Rise in sales tax as French PM Fillon warns bankruptcy no longer an abstract word

[marmar]

from rfi:



He said the country’s financial, economic and social sovereignty meant “prolonged collective efforts and even some sacrifices” were necessary.

France needs to save 100 billion euros a year to eliminate the budget deficit by the 2016 deadline, including 500 million euros in extra state budget savings next year.

New measures include an increase in Value Added Tax, VAT, from 5.5 per cent to seven per cent, bringing forward by a year to 2017 the increase in the state retirement age from 60 to 62 and increasing corporate tax by five per cent for companies which have an annual turnover of more than 250 million euros.

The government also hopes to reduce spending on public health by 700 million euros and will increase some social benefits by just one per cent next year in line with expected growth figures. .............(more)

The complete piece is at: http://www.english.rfi.fr/france/20111107-rise-sales-tax-french-pm-fillon-warns-bankruptcy-no-longer-abstract-word

[Mass]

1. Good news is that these jokers will lose power next spring.

VAT at 5.5% is only for products like food. Everything else is already around 20%. So, basically, their solution is to tax poor people.