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Last updated at 21:44 PM, Thu, 2 Sep
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General taxes may go up
The government needs more of our money...
A government minister has admitted that general taxes might have to rise within a few years to meet its target on reducing the budget deficit.
In recent weeks the government has announced a string of measures aimed at trimming back on tax breaks in a bid to save the billions it needs to plug the gap in public finances.
The latest one is a new tax measure on the popular investment vehicle the assurance vie, though it is unlikely to have a major impact for most long-term investors.
But budget minister François Baroin has admitted more savings will be needed in future years, either more cuts of tax breaks or ‘a progressive increase in the CRDS’.
The CRDS or contribution au remboursement de la dette sociale, was a tax created to fill the hole in the country’s social security and health budget.
So far the government has resisted putting up this general tax, preferring to concentrate on trimming tax breaks and tax credits.
However it now looks as if the CRDS might have to go up in 2013 – a measure that would affect every taxpayer in the country.