Tuesday, January 23, 2007
UMP candidate Nicolas Sarkozy has outlined a new economic plan, one he hopes will revitalize French growth. So what is he proposing.
1. A 4% cut in individual taxes amd charges, which is 2000 euros/year on average per household.
2. 95% of population will not be charged inheritance tax.
3. Anyone who works more than the set 35 hours will not pay tax on those hours, and their employer won't pay social charges for those hours.
4. On average only one civil servant will be hired for every two that resign. Interestingly, civil servant salaries and pensions cost France a whopping 45% of its annual budget. US entitlement programs make up a majority of the budget too, but that is spread out over the general population.
Sarkozy is hoping that these ideas will be enough to gain him votes and generate some economic stimulus, but not too much to scare voters and cause massive rioting. If he succeeds this will certainly put Royal on the defensive, and pressure her to release her own pragmatic vision of the future. If not, she may have an easier ride than expected.
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