French socialists in charge of the government have admitted that there's a tax threshold too high even for them. The country has the steepest tax burden in the world, collecting 45% of the country's GDP in tax revenue, and it's set to climb to a new record level next year.
The Telegraph reported:
France's Socialist government has admitted that the country cannot cope with any further tax rises and promised no more hikes just days ahead of the country's largest ever tax bill.
Returning from their summer break, the French are about to discover stinging rises in tax bills in their letter boxes – the result of a series of new levies enacted by President François Hollande as he seeks to plug the French deficit and bring down public debt – now riding at 92 per cent of GDP.
“The government thought that by continually raising taxes, they could raise returns but they are now realising, rather belatedly, the error of their ways,” said Marc Touati, economist at ACDEFI consultancy. “Today in France, we are approaching 47 per cent of total tax pressure compared to GDP.