A cultural difference?

There cannot be two more extreme ways to tackle the same issue, of the budget deficit and controling spending versus revenu of the state. France just anoucnced  new mesures to reduce the budget deficit by € 11bn in 2012.  The solution, increase taxes!!!! Isn't there some ways to save money on government spending instead?

At the opposit spectrum, the UK tackle the same issue by essentially... slashing spend on social services, reducing staff , and cutting where ever possible. Taxes remained vastly unchanged in comparison.

Both are extreme in their own ways. France is obviously not ready to give up some of the lavish lifestyle it is accustomed to, but how long can the country afford it?

For the UK, I will keep my mouth shut, having been a host of this country for the past 20 years.....

The new French measures:

Additional tax on high income: Taxpayers with an overall taxable income  in excess of €500,000 will pay an additional tax of 3% avove this threshold.

Social contributions on income from capital  increases from 12.3% to 13.5%

Capital Gains Tax on properties, the 5% a year of ownership rebate after the 5th year has been removed, and CGT increased from 31.3% to 32.5% 

Corporation tax, losses can only be carried back one year, with a limit of 60% of the profit for profits in excess of € 1M.

Private health insurance premium currently taxed at 3.5% or 7%, will be increased to 7% and 9% respectively.

Tax loopholes will be progressively closed, amonf the first one is the rebates for investment in unlisted companies .