Mike Shedlock
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In spite of massive hikes in taxes on the wealthy and an increase in the VAT and other taxes revenue estimates missed their targets badly. Reader Lionel writes ...

Hi Mish,

As you were expecting, France did not manage to get as much tax revenue as expected by the government. Total revenues were €5.5 billion less than expected, split as follow:

€500 million less in income tax
€1 billion less in VAT
€4 billion less in business tax (tax on business profits).

Moreover, if you compare it to the initial forecast, it's €11 billion less than expected! And of course expenses have increased €3 billion.

It reminds me your past articles about Spain.

Lionel

Let's take a look at some of the links Lionel sent.

Budget Minister Admits Revenue Shortfall

Via translation, Budget Minister Admits Revenue Shortfall of €5.5 Billion

The Minister for the Budget Bernard Cazeneuve admitted Sunday that the revenue of the State in 2013 would be lower than expected, the order of € 5.5 billion, due to the poor economy, he said.

"According to our calculations, there is a shift to VAT of about one billion, and corporate tax of about four billion," said Cazeneuve.

The income tax shortfall was around 500 million euros.
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Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.
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