Thursday, July 5, 2012

Tax hikes on the rich in new French budget

French Prime Minister Jean-Marc Ayrault, delivers his first speech to the new Socialist-dominated parliament, at the national Assembly in Paris, Tuesday July 3, 2012. France?s new Socialist prime minister says the country?s debts have become ?crushing,? laying the groundwork for expected spending cuts and tax hikes.(AP Photo/Remy de la Mauviniere)

French Prime Minister Jean-Marc Ayrault, delivers his first speech to the new Socialist-dominated parliament, at the national Assembly in Paris, Tuesday July 3, 2012. France?s new Socialist prime minister says the country?s debts have become ?crushing,? laying the groundwork for expected spending cuts and tax hikes.(AP Photo/Remy de la Mauviniere)

(AP) ? France's Socialist government wants to raise ?7.2 billion ($9 billion) in new revenue from higher taxes on estates, banks and oil companies to try to reduce the deficit.

The measures are among those in a revised 2012 budget draft presented at a Cabinet meeting Wednesday. It will go to parliament later this month, where it is expected to win approval.

France's new leadership has criticized austerity measures imposed around Europe, saying they are making the region's debt crisis worse. It has focused on higher taxes for the well-off, though some spending cuts are also expected.

Prime Minister Jean-Marc Ayrault, speaking at a Fourth of July event at the U.S. Embassy, warned that Europe's debt crisis "has not been extinguished" and that it's not a "problem of the Europeans alone."

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-07-04-France-Financial%20Crisis/id-63d303eaf4e649f8acabc50823b34755

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