The staff costs are higher at the Banque de France than in the Bundesbank! This is one of the conclusions of our comparative study “Banque de France vs Bundesbank”. On the one hand, 1.45 billion euros, in the other hand, 700 million euros! Regarding pension costs, the comparison also makes a significant difference: 440 million euros in France compare to the Bundesbank’s 100 million. With this precision: the Bank of France pensions are not funded …
It is the stunning figure revealed by Jean-Philippe’s Delsol in his book “Why I Am Going To Leave France”, an IREF bestseller.
Between the public sector (5.2 millions), the parapublic sector (2 millions), those who are granted the public allowance called “Active Solidarity Revenue” (1.3 millions) and those who are granted direct or indirect public allowances (6 millions), the total amount of the French people receiving public money is superior to those working in the private sector!
About a month ago, the United States experienced the “Shutdown” for 15 days. Several jurisdictions were closed and about 800,000 employees have been laid off because no agreement was reached on the budget. The Democrats and President Obama cried about the paralysis of the economy in order to end the “shutdown”. In fact, the US economy has not been affected by the shutdown. More: the US economy even experienced an upturn. According to the data on the third quarter, U.S. GDP grew by 2.8% and more than 212,000 net jobs were created in the private sector! Long live the “shutdown”!
As shown in the Report of the IREF on Taxation in Europe, many countries have lowered their corporate tax. The UK is among them. The corporate tax will gradually decrease: 23% in 2013/14, 21% in 2014/15 and 20% in 2015/16.
It must be an example for countries as France…
1,130: here is the number of Americans who gave up their citizenship and left the US territory. Taxation made them leave.
Who said the US was a tax haven? It is true that tax pressure on individuals and companies is much lighter than in France. Furthermore there is a real tax competition between the States. Yet, it is not sufficient.
Many American taxpayers left because of Obama’s policy and tax increases. Thus, in Q2 of this year, 1130 US taxpayers gave up their citizenship because of taxation.
It is twice as much as the whole year 2012, and ten times more than in 2007, one year before Obama’s election.
According to a Eurobarometer / TNS Opinion, only 50% of the French people have a good opinion of their government whereas 46% have a bad opinion (4% are undecided). In Germany, the government gathers 73% favorable opinion and 23% unfavorable opinions (4% were undecided). Yet, in 2013 public spending in Germany reach 45.4% of GDP against 57.2% in France. A huge difference – 12 points – which does not contribute to the improvement of our public sector. That is a good reason to reduce spending.
The French Government supporting private companies thanks a system of financial assistance: what an economic heresy! Yet, over the last thirty years, it has become the creed for French Governments, whether conservative of leftist. Four figures are to be pointed out:
– 6 000 aids are available for companies.
– 15 000 civil servants are managing these financial aids in the Central administration and local governments.
– 700 million euros is the yearly cost to run this administration.
– 110 billion euros is the total amount of aids given to companies.
And of course, it does not work at all. The French economic growth on Q1 is at -0.2%, unemployment reached 10.8% in May, business context is deteriorating and the economic momentum is non-existent. Do we need any more proofs that Government’s intervention in the economy is a waste of taxpayers’ money?
In which country would you live best? In France, amid interventionist politicians and cocooned by a Big Government? Not at all… The last OECD data about the well-being in the member States has ranked 34 countries. France is ranked… 18th. Australia is first, followed by Sweden and Canada. It is very interesting to point out that in the Top 10 can be found countries that reformed their Big Government in the last 20 years.
Moreover, all countries (as Australia, New Zealand, the United States, the United Kingdom…) that are supposed to be hurt by free market are much better ranked than France. Oddly enough, this ranking has not been reported by French media…
“If I have less money, I shouldn’t spend less but tax more”. That is exactly what the French President François Hollande and his Government are doing. Economic principles are obviously upside down. That is the result of socialist economic policies denying reality: the French budget was established on the assumption that taxpayers would continue to spend money as if there were no crisis and as if tax revenues were some kind of annuity. This error can be lethal for French taxpayers.
The French Government forecasted an 8 billion euros VAT increase for 2013. The problem is that consumers did not act as the Government planned. On the contrary, they spent less: – 0.1% on Q1 2013, -0.3% in April. Therefore, VAT revenues are shrinking by 2.3% YoY thus losing more than 1 billion euros: 44.7 billion euros were levied instead of the forecasted 45.7 billion
Same trend for taxes on energy – called TIPCE -, especially gas: tax revenues decrease by 6.2%. Even if this TIPCE amounts for only 5% of the French budget, that is still a loss that the Government would have been willing to avoid. That is why some ministers would like to raise taxes on leaded gas.
If the trend goes on the decreasing path, it is likely the Government will loss 10.8 billion euros. But as pointed, that may not lead to public spending reduction: on the contrary, it may lead to more taxes. To be followed…
Sylvain Charat, Ph.D
43 billion Swedish crowns . As stated by the Waste Ombudsman (Swedish Taxpayers’ Association), this is the amount erroneously paid out by the EU according to its Court of Auditors. These payments represent more than twice the amount that Swedish taxpayers send to Brussels every year.
For the 18th consecutive year, the Court has not signed off the EU budget (Declaration of Assurance).