Tuesday, July 24, 2007


There has been much evidence on France's punitive tax regime containing a huge size of tax burden, outstripping and punishing the aggregate effects of productive behavior, putting France's economy at risk in the global economic perspective. Nevertheless, high rate of public spending, exceeding 50 percent of the annual GDP heats the volatility of output to external shocks as well as the sky-high government spending creates depedency tyranny at the expense of productivity of the labor supply. Only social security outlays present over 30 percent of the overall government spending. In addition, the overall productivity of labor supply is hampered by restrictive reductions in the length of the workweek.

Two days ago, International Herald Tribune published a vibrant article about the battle over tax cuts. I read the entire article. I found it both, amusing and inspiring. Its amusing flavor grasps over French tradition resting on "old glory", at the same time France as a "consumer choice-place"does not offer many attractive spotlights in nearly every field, varying from entertainment, literature and science. Needless to say, I still adore French tourist spots and sweet flavored French wines, but when selecting a place to live and work, I could hardly choose France to be the "winning destination"

After I read the article, I wrote a comment on France's prosposed economic reforms, focused mainly on tax cuts and reducing the aggregate tax burden which would inevitably boost France's economic performance on global markets as well as it would improve parameters such as GDP growth, job creation rate, and capital formation.

You can read my brief comment here [comment no. 18].

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