François Hollande and Pierre Moscovici have finally shown their socialist face to all the skeptics who so far had doubts about the French president's electoral campaign. And so today the government of France presented the 2013 budget plan, a maneuver of 36,9 billion euro, which in order to achieve the objective of a deficit/GDP ratio of 3% in 2013 has decided to tax the richest. The plan presented today to the Council of Ministers, which will be supplemented on Monday by a program on the social assistance network, provides 20 billion euros more in tax revenue – 10 billion from households and 10 billion from businesses – to which are added 4,4 billion of extra income already decided this summer, 10 billion savings on state spending e 2,5 billion on health insurance expenses.
It is an "unprecedented" effort, said the Elysée and according to government spokeswoman Najat Vallaud-Belkacem, President François Hollande defined the maneuvers as "carriers of recovery" but with the an effort that will hit "the more well-off families" the most.
And it will be precisely the middle-upper classes who will not easily forget this budget law. One has been created new "exceptional" rate of 45% for income exceeding 150 thousand euros for personal income tax, (a gain of 320 million for the State). It was also lowered the family quotient from 2.300 to 2.000 euros (490 million).
On the business front, the controversial taxation has also been included 75% of income from work exceeding 1 million euros which, for the coffers of Paris, implies about 200 million euros more. It was also established the increase ofExtraordinary tax on luck (with a tax rate between 0,55% and 1,8% depending on the amount of assets) which will bring about one billion euros more.
Of notable significance, France is the first European country to make a similar choice and has chosen to align la to income Capital annuity tax: the state's income from interest and dividends will grow by 2 billion euros next year. While withdrawals on movable capital gains will increase by 1 billion.
Finally, the Government of Paris reiterated that for 2013 forecasts growth of 0,8%, while this year the report defficiency/GDP will settle at 4,5%slightly higher than previously expected. However, the trend is downwards and in the next few years the deficit should fall, according to government plans, to 2,2% in 2014, 1,3% in 2015 and 0,6% in 2016.
