French President, Nicolas Sarkozy, has announced a tax increase on investment revenue which will very likely lead to higher tax bills for non-resident homeowners in
His proposed plan is to introduce a 1% rise on share, property rental and other investment income.
Similar to critics of the government in
It seems some of Sarkozy's comerades are having trouble coming to terms with the new direction. Alain Lambert, a prominent senator and a member of Mr Sarkozy’s centre-right coalition, said: “I’m going to need a few minutes to understand why we’re raising tax on investment revenue when we brought down inheritance tax a year ago.”
Sarkozy hopes that the new 30% rate will generate over €1.5 billion in additional revenue each year. It is, allegedly, being used to get people out of the 'welfare trap', where French citizens are better off on the dole than they are in low paying jobs. Now where have we heard that before?
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