Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Some remarks :

she will pay as much as 68 percent in income taxes

Top marginal income tax rate is around 40 % in France...
The article might be reporting about labor taxes, which in effect are at about 68% of net wage (and include mostly health, unemployment and other insurances)

An individual's home no longer can be seized if his business fails

SARL and EURL, statutes for anonymous or unipersonal companies that made sure one's house wouldn't be seized, are rather older than that...

Minister for Small Businesses Renaud Dutreil said a 2005 labor law that eased firing rules for companies with fewer than 20 employees created about 720,000 jobs. Companies were more disposed to hire without the fear of legal battles if they had to reduce staff, he said.

That must be the CNE about which most estimates claim about 24000 job creations. Although more CNE contracts have been signed, most of those jobs would have been created anyway...

A French company must pay about 40 percent of an employee's salary in labor taxes, one of the highest rates among OECD countries, he said. In the U.K. it's about 20 percent, and in the U.S., 10 percent.

Ah, the joys of deregulations... And millions of working poors, not covered by basic health insurance. And the fact that part of the wages goes to the state rather than the worker is pretty irrelevant to the difficulties of hiring...

Un roi sans divertissement est un homme plein de misères

by linca (antonin POINT lucas AROBASE gmail.com) on Mon Mar 19th, 2007 at 05:16:10 PM EST

As linca says, this article mixes up old existing measures and new ones. And I agree with every point he makes, especially about the claim that the 2005 law created 720000 jobs: even right-wing politicians acknowledge that it has not created more than 30000 jobs...

And, yes, the 4O% of the salary that are paid are not taxes, but contributions for the health, unemployment and retirement schemes...

But it is true that there have been improvements: the administrative burden for business creation has been reduced and business creation is growing. Here are the last figures (in French, with charts)

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet

by Melanchthon on Mon Mar 19th, 2007 at 07:02:03 PM EST
[ Parent ]
I also agree that paying 40% of salary for a combination of taxes, health, unemployment and retirement schemes is not a problem.  the french get a lot for this in return.  but I'm just confused with this statement which I think refers to her own personal tax rate:,
This fiscal year, her first in business, she is benefiting from deferred labor taxes. Next year, she will pay as much as 68 percent in income taxes
which seems like a lot for someone just starting a business.  I think it must be poorly worded, and means something differently than I'm interpretting.
by wchurchill on Mon Mar 19th, 2007 at 09:08:18 PM EST
[ Parent ]
Deferred labor taxes mean that she isn't paying for those in her first year, but will have to pay for them later... two years of labor taxes that have to be payed in a single year could add up to 68% labor taxes during the second year. It's certainly not income tax. Although i'd bet that Berenice, like most "entrepreneur", has difficulties separating revenues of the company and personal income.

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Mon Mar 19th, 2007 at 09:19:13 PM EST
[ Parent ]


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