France’s Richest Taxpayers Plead for Extra Tax

August 25, 2011 Taxation in France

French call for New High Income taxSome of France’s wealthiest individuals have called for the government to instate a one time tax on the ultra-rich, to aid the country’s financial situation.

In an open letter publicised on August 23rd some of France’s wealthiest taxpayers claimed that they would rather pay an extra one time tax than see the country undergo extensive austerity measures and spending cuts. It was explained that such a tax would also be preferable to seeing permanent cut being instated to tax exemptions enjoyed by high income earners.

The letter was accompanied by a petition signed by 16 of the wealthiest people in France. Amongst the signatories was L’Oréal heiress Liliane Bettencourt, along with some of the country’s most prominent corporate executives.

According to local taxation experts, the signatories of the letter are hoping that a one-off tax could potentially raise enough revenues to deter the French government from making any further changes to the tax system, which would target taxpayers with assets held in overseas banks and financial institutions.

The call for the extra tax comes as President Nicolas Sarkozy looks for means to lower the nation’s budget deficit, and make nearly EUR 4 billion of spending cuts this year. Throughout his election campaign the President repeatedly promised not to raise income taxes on personal incomes, significantly limiting his room for manoeuvrability when forming the country’s economic plan. The president is expected to announce some national austerity measures during this week.

Photo by Images_of_Money