A balanced state budget, in which revenues exceed expenditures, and citizens are satisfied with the government's social policies, is an elusive ideal. In reality, budget deficits and public debt are much more common.
French budget deficit, i.e. the excess of expenses over income in May 2012 amounted to 5, 325 billion euros, or 5.2%. Socialist President François Hollande, even during the election campaign, promised to solve this problem without resorting to severe cuts in social programs. In addition, he spoke about the need to support the middle class and invest in culture and education. Accordingly, he had only one way to go: increasing taxes on the income of the richest citizens of the country.
And on July 19, 2012, the Minister of the Budget Jerome Cayuzak announced that from 2013, citizens whose annual income exceeds 1 million euros will pay a tax of 75%. This measure will help narrow the income gap between the richest and poorest French citizens and reduce social tensions. Raising taxes is an unpopular decision, and the minister consoled the wealthy French, stressing that it was a temporary measure. It is designed for 3 years. During this time, the treasury will receive about 7 billion euros.
In addition, owners of assets over 1.3 million euros will have to pay a one-time fee. 1, 1 million euros should bring an increase in income tax and dividends paid by corporations. The authorities do not exclude the possibility of increasing the income tax for citizens with an income of 150 thousand euros per year. We are no longer talking about those who make a profit through rent or the exploitation of other people's labor, but about highly paid specialists - the upper stratum of the middle class.
Pessimists are reluctant to trust the government's words that the increase is a temporary measure. As you know, there is nothing more permanent than temporary, and opponents of the president predict an outflow of capital from the country and a massive withdrawal of production abroad, for example, to England. British Prime Minister David Cameron is cited as an example for Hollande, who promises to reduce taxes on large fortunes to 40% from the current 50%.
