Thursday, August 30, 2012

French PM: 75% Tax Will Not Define Government

France’s Prime Minister has told CNBC that his government will work hard with businesses to avoid major job losses and dismissed claims that his government is anti-business and driving away investment with a 75 percent tax on high earners.
"This is not what is going to sum up our policies,” Jean-Marc Ayrault said in his first interview with CNBC since taking office earlier this year.
As Ayrault met with business leaders in Versailles on the outskirts of Paris, he said that the rich had to do their part to help France’s economy back onto its feet.
“This exceptional contribution is going to be a request to the ones who have extremely high salaries to take part in a collective effort for a national recovery. It is a shared effort, it is not going to solve every problem,” said Ayrault, who claimed business leaders understood this.
The CEO of Societe Generale, Frederic Oudea told CNBC the 75 percent tax is highly symbolic and could stop people coming to and investing in France.
“Of course there is this question of 75 percent which can be effectively an obstacle for people to come to France, to create jobs etc. And is seen sometimes from outside not as the right incentive to create initiatives, to create business,” said Oudea, who thinks supporting investment is crucial.

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