French Socialist President François Hollande is set to increase the minimum wage by more than inflation, betting consumers will help revive the country’s stalling economy, while his government levies more taxes on the wealthy and large corporations in a bid to reduce the budget deficit.
…The government also is preparing to unveil tax increases to make good on its pledge to reduce the budget deficit to 4.5% of yearly output this year and 3% in 2013. The list includes a new tax on dividends, a new top income-tax bracket of 75% for people earning more than €1 million a year, and increases in the wealth and inheritance taxes.
The government is hoping to achieve a nominal freeze in spending next year, but wants its citizens first to see that taxes have been raised on the rich. As for the minimum wage increase, the unions are complaining that it is no more than “equivalent to an extra baguette per week.”
Here is more, “France to Lift Minimum Wage in Bid to Rev Up Economy.”