France is broke and need to cut something like 130b from it's budget annually by 2030.
If they don't, bond yields will skyrocket making their fiscal pain even more pronounced. They need to raise taxes, cut retiree benefits and raise the retirement age.
Either France does it on their own terms or the bond market will do it for them.
Their social benefits have been much too rich for too long for an economy that isn't growing. It sucks for young people but the math is the math.
France needs a president that will explain that to the French people as most are not experts in bond yields and budget deficits relative to GDP. The last few presidents have tried and the people have responded by rioting.
Boomers refuse to accept any changes to the pension system, while the left keeps demanding higher taxes and more social spending. At this rate, we're screwed.
Except that France is already one of the most heavily taxed countries in the world. We’re already well above the average for developed countries.
The problem isn’t “not enough taxes on the rich.”
The problem is that the money is massively wasted, that there’s waste and corruption at every level, and that we have a pension system that’s a ticking time bomb.
Raising taxes even more solves nothing when the state spends 57% of GDP and the results (schools, hospitals, security, infrastructure) are stagnating or getting worse.
It’s not a revenue problem. It’s a management and structural problem.
But hey, keeping on believing that “more taxes = more justice” when we’re already at the ceiling is intellectually comfortable.
Exactly and I didn’t hear any candidate for presidential election speak about that. It’s either remove every social progress or tax more they barely speaking about ai and job destruction or universal income.
on est peut etre l'un des pays Les plus taxés, sauf que c'est Les pauvres qui en patient le plus. Il y a de l'argent, le probleme c'est qu'il ne change jamais de poches.
It "didn't work" because it's not enough. Which is also silly because France is a better country for it. Taxing rich people a little more isn't going to solve every problem
This has failed so many times... The truly rich people don't earn salaries and don't have most of their money in france.
Raising taxes will mostly impact the top salary earners which can't play these accounting games. These are usually highly sought after experts in their field, and they are already paying too much taxes to maintain the bloated welfare and pension systems. They will just pack up and go elsewhere, as most countries will be happy to have them. The effect will be less tax revenue overall (see Laffer's curve).
Tax them 100% of their income and it still wouldn't make a difference. The size of the French state is simply too big, too many people collecting government welfare.
If you remove all incentive for the rich to pursue wealth accumulation they will simply leave or stop producing as much wealth. Both scenarios are counter productive to those who expect taxing the rich to solve a failing economy.
The incentive is access to leech of the country economy, very often taking from public funds and forcing politicians to pass legistalion in their favour. If they want to go which surprise surprise they won't they can get the fuck out, they will be easily replaced.
Well unfortunately in this system you do need them because even though for you they don't pay enough taxes, they do still pay a lot of taxes and employ a lot of people. If you removed the wealthy from night to morning the system would falter. You'd have to move to a different system first in order to be able to not depend on them.
They mostly evade taxes, money launder, have as much as they can in tax havens...even Robert Kiyosaki gleefully explains this, epic music and slow panning included, in a YT video pretty much wanting to say in the end GREAT MEN find their way or something on that line.
This is not counting taking out from public resources for their shitty profit motivated private scams quite often.
What do you think happens when you seize all the money of the mega rich via heavy taxation, after a few years either they're gone to other countries, or they are just not as rich, the entire left party budget resides on a finite resource that will disappear in a few years only widening France's debt...
Not saying we should tax mega corps and the super rich, but this won't prevent what's coming in 2027.
As said, already, France is overly taxed already. They have very limited room for this.
I would almost argue that cutting taxes would restore confidence in people about the cost of living if it went with government cuts and this could help economy grow.
"Boomers refuse to accept changes to the pension system. " lol. I work in a retirement home. I have colleagues that are older than some of the residents.
We have elderlies that can't afford a house. Others that own one and can't afford to eat and yet are taxed almost two months of pension at the end of the year. How is that "refusing to accept changes"?
119
u/us1549 10h ago edited 7h ago
France is broke and need to cut something like 130b from it's budget annually by 2030.
If they don't, bond yields will skyrocket making their fiscal pain even more pronounced. They need to raise taxes, cut retiree benefits and raise the retirement age.
Either France does it on their own terms or the bond market will do it for them.
Their social benefits have been much too rich for too long for an economy that isn't growing. It sucks for young people but the math is the math.
France needs a president that will explain that to the French people as most are not experts in bond yields and budget deficits relative to GDP. The last few presidents have tried and the people have responded by rioting.
Great explanation of France's fiscal crisis
https://youtu.be/Uje_KSCzJJc?si=rUPmEbJjsPG-TMXu