Sarko's Gift to the Wealthy: France's new president has launched an assault on the welfare state.

[marmar]

from The Nation:


article | posted August 15, 2007 (web only)
Sarko's Gift to the Wealthy
Jordan Stancil



These are depressing days in France, as the true meaning of Nicolas Sarkozy's accession to the presidency becomes clear. The new government's very first law was a massive and unnecessary tax cut, passed by the National Assembly in the early morning hours of Bastille Day, that will go mostly to the wealthy, further degrade France's public finances and probably lead to cuts in programs the majority of people rely on.

The centerpiece of the new law sets a cap on each household's overall tax bill at 50 percent of income. This includes income taxes, property taxes, local taxes, the wealth tax and two taxes that were levied to shore up the social security systems. (This cap already existed, but it had been set at 60 percent.)

This might sound reasonable, but according to the French government's own estimates, very few people will benefit. In a total population of 62 million, there are only 234,397 households whose tax bill exceeds 50 percent of income. And 201,864 of these households will receive an average tax break of only 649 euros (or less than $900 at the current exchange rate of $1.37 to one euro).

As with the Bush Administration's tax cuts, the big winners in France will be at the very top. According to the Finance Ministry's estimates, the 1,081 households whose net worth is over 15.5 million euros will each get the equivalent of more than $344,000. So Sarkozy's "modernization" looks pretty good from the top, especially since the new government sweetened the deal with the completely superfluous near-abolition of the estate tax.

To be fair, the tax package did include something for those who soldier on with less than 15 million euros in net worth: Overtime pay will no longer be taxed. But besides the fact that people will have to work more in order to benefit from this part of the tax cut, this accounted for less than half the package's total annual price tag of 13.6 billion euros. .....(more)

The complete piece is at: http://www.thenation.com/doc/20070827/stancil

[Joanne98]

1. What in the Hell were the French thinking?

[Donnachaidh]

2. I think they are probably asking themselves that right now

Can they recall this asshole? Vote of no confidence?

[marmar]

4. Their Parliamentary system does allow for more flexibility in getting rid of a rogue govt. ....

.... and we know the French will take to the streets en masse when they are pissed.

[Donnachaidh]

6. heh -- should we get a pool going?

I'm going to Costco for more popcorn. :popcorn:

[Igel]

7. What was the reporter thinking?

"In a total population of 62 million, there are only 234,397 households whose tax bill exceeds 50 percent of income."

Could he have written, "In a country of 20 million households, there are only 600,000 people whose family tax bill exceeds 50 percent of income."
Assuming 3 people per household (I have no idea if it's accurate), the quick-yet-sloppy reader gets the impression that it's 3% that benefit. The way the reporter put it, the quick-yet-sloppy reader thinks it's something like .4% that benefit.

And in other news, Houston got more than 20 cm of rain today, when it's usual total rainfall is only 45 inches. And the current dewpoint is 75 degrees F, while yesterday's relative humidity was 80%--so today must be better, right? (Of course, with the temp at 77 degrees, that makes for a humidity of 90% today).

But the thoughtful reader realizes the mixing of units, whether to achieve a desired impression through manipulation or just out of sheer laziness or mental inacuity, not bothering or knowing to actually convert two members of an implied comparison to consistent units, isn't exactly brilliant.

The smegging goit.

(rant off)

[aquart]

3. Their own George.

[cyclezealot]

5. once the control of the press

is in the hands of the idle rich, democracy is gone.