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France to tax companies 75 pct on $1.3M salaries

Paris, the French President francois hollande may eventually found a way, a tax is very rich: paid by company.
Thursday night in a television interview, he said that he hopes the company pay its employees more than 1 million euros ($1.3 million), the wage payment of 75% of the payroll tax.
Tax advice, this still needs to be approved by parliament, replace Mr Hollande's signature activities one of advice: taxes on individuals who earn more than 75% of the 1 million euros. France's highest court threw out the plan and the government has been looking for alternatives.
Mr Hollande said he hoped that the new scheme will promote enterprises to reduce executive pay time, France's economic pain, unemployment soaring, employees are required to take a pay cut.
While President bush reiterated that his goal is to stop rising unemployment rate this year, and restart growth, he did not provide specific new economic policy.
"Tool, we need to fully use them," he said, the French television.
The new payroll taxes will last only two years. At the highest salary, the company has to pay payroll taxes, add up to at least 50% of the paid.
"What is my idea? It is not a punishment," hollande said. "So many people ask, who is the tallest income not this two years?"
Mr Hollande's planned individual tax rate of 75% was also seen as largely symbolic. This is possible only about 1 million around 8.5 billion euros to 3 million euros - France under the background of deficit, an insignificant amount.
Due to the popularity of Mr Hollande slides, he has been trying to persuade the French think that he is not doing enough, to stimulate economic growth - or to redistribute wealth, for he left. High earners may be a simple for him to win voters.
France's growth has been stagnant for almost two years, the unemployment rate has risen for 19 months in a row, is now 10.6% ever since 1999. March consumer confidence index fell, after briefly began to rise again, earlier this year. INSEE national statistics institutions, found this month, French economic prospects in the coming year more pessimistic than ever before. (the survey in 1972.)
However, some people might ask, if add another corporate tax, in order to encourage economic growth, he is trying to send the correct information.
Avoided, despite the economic recession, Mr Hollande momentum deep spending cuts, Greece and Spain and other European countries. , he said he would not walk this path - and even France will miss 3% of its gross domestic product (GDP) this year's deficit target.
"Extended deflation risks of not reducing the deficit, and bring the unpopular government populist eat alive," he said.
France has largely avoided the appear in the European countries are experiencing severe recession, but layoffs pile up, has produced some of the protests. On Thursday, the carmaker PSA Peugeot Citroen to shut down a plant, about 100 workers rushed into the office of France's leading business lobby, MEDEF,. Police said dozens of people have been arrested.
 



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