Socialist President Francois Hollande's 2013 budget calls for a 75% tax hike on those earning over a million euros a year. Business is also taxed as well even though I don't know the rate that will be charged on business. Hollande is facing record unemployment and economic stagnation. In the midst of record unemployment, Hollande's answer to remedy the budget situation is the same as President Barack Obama's: tax the rich. France will slide even deeper into the abyss with tax hikes on business and the rich. What's tragic is that's what I believe President Obama will do once he's re-elected (which is more than likely).
Allow me to shed some light on the matter. When you tax the wealthy, they'll pass the higher tax in the form of price increases. The middle class all the way down to the lowest class feels the effects of higher taxes levied on the rich. To read the full story, click on the above link from Reuters.com.
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