French government has recently announced that they will temporarily raise taxes to the main national companies in order to finance the payback of tax paid on dividends, which was in force since 2012 but has been considered an illegal charge by the country’s Constitutional Court. Societé Generale strategists explain how that payback is going to be implemented as well as who will be the most benefited and affected. Furthermore, analysts focus on the impact of the tax raise itself.
Perhaps one of the most important virtues France has is the real cause of its malaise: the public services work very well, but they are tremendously expensive and financing them is eating into the rest of the country. Taxes represent 56% of GDP, even higher than in Sweden.