Good Thinking! France Cuts Taxes

By July 11, 2007General

From Reuters, via CNNMoney, “France needs to quit thinking and ‘get to work'”

PARIS (Reuters) — France’s love affair with ideas has gone too far and it is time for the country to quit thinking and get to work, Economy Minister Christine Lagarde said Tuesday as she plugged a tax plan aimed at boosting the economy.

French labor and tax laws discourage job creation and create disincentives for working harder. The tax proposals would eliminate taxes on overtime, cut the death tax, and cap income taxes. The most punitive taxes on the wealthy would be reduced.

And in the United States? James Pethokoukis of U.S. News talked to Greg Valliere of the Stanford Group last month about taxes. Whoa, boy.

“Taxes are going up after the Grand Compromise of 2009. Everything will be on the table that year, as a new president—probably a Democrat—will seek to raise taxes on the wealthy in an attempt to pay for reform of the alternative minimum tax and also to pay for new social programs, especially healthcare. That means everything will be on the table—taxation of executive compensation, capital gains and dividend tax rates, AMT rates, etc. And “carried interest,” which lowers taxes on private-equity firms, also will be on the table. In the meantime, lawmakers will push for this Blackstone provision, and it undoubtedly will wind up attached to legislation winding its way through Congress later this year. Because President Bush is averse to raising taxes, the provision will have to be attached to a bill that he will be forced to sign. Our best guess is that the vehicle will be a measure that keeps middle-class Americans out of the AMT.”

France, leading the way. Kind of embarrassing, really.

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