http://news.yahoo.com/french-budget-adds-7-billion-euros-taxes-rich-100603279--business.htmlFrance slaps 7 billion euros in taxes on rich, big firms By Daniel Flynn | Reuters – 2 hrs 6 mins ago PARIS (Reuters) - France's new Socialist government announced a raft of tax rises worth 7.2 billions euros on Wednesday, including heavy one-off levies on wealthy households and big corporations, to plug a revenue shortfall this year from feeble economic growth. Prime Minister Jean-Marc Ayrault on Tuesday slashed this year's official growth forecast to 0.3 percent of GDP from a previous estimate of 0.7 percent, and to 1.2 percent in 2013 from 1.75 percent previously. By eliminating a tax exemption on overtime introduced by Sarkozy, the Socialists aim to raise 980 million euros this year. Repealing a law which shifted labour charges onto a rise in VAT sales tax will also have a net positive effect for 800 million euros, and a doubling of a tax on financial transactions to 0.2 percent will bring in 170 million euros. Other tax measures in the budget include a 3 percent tax to be paid by companies on dividends distributed to shareholders, in an effort to encourage firms to use their cash flow for investment as France seeks to overturn a widening competitiveness gap with industrial powerhouse Germany. |