Saturday, December 5, 2009

Compromise on La Taxe Pro

The government and the Senate have struck a compromise on the reform of la taxe professionnelle. This tax will be replaced by une contribution économique territoriale, which will be assessed on corporate real estate on value added but will be lighter than the taxe pro by some 4.3 billion euros. How will the shortfall be made up? Doesn't the new tax, er, make that contribution, perpetuate the negative economic effects of the old?

Since the elimination of the TP was to have been the compensation to businesses for accepting the carbon tax, will they feel betrayed? Will the mayors (who are strongly represented in the Senate and who strongly opposed the repeal of the TP) be satisfied with the new compromise?

Many questions, few answers.

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