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France Hikes Taxes, "Wildly Inaccurate Projections" Hilarity Ensues

Tyler Durden's picture




 

Having suffered a dismal confidence-sapping defeat in last weekend's elections, Francois Hollande's French government is at the center of another embarrassing faux pas this morning. Somewhat famously, Hollande has raised income tax, VAT and corporation tax since he was elected two years ago... and government forecast EUR30bn of extra tax income. As The BBC reports, the actual amount gained... EUR16bn (leaving a EUR14bn black hole) and forcing The Court of Auditors to proclaim that "forecasts of tax revenue in 2013 were so wildly inaccurate that they cast doubt on its forecasts for this year." Mon Dieu... they lied?

 

As The BBC reports, the French government faces a 14bn-euro black hole in its public finances after overestimating tax income for the last financial year.

French President Francois Hollande has raised income tax, VAT and corporation tax since he was elected two years ago.

 

The Court of Auditors said receipts from all three taxes amounted to an extra 16bn euros in 2013.

 

That was a little more than half the government's forecast of 30bn euros of extra tax income.

 

The Court of Auditors, which oversees the government's accounts, said the Elysee Palace's forecasts of tax revenue in 2013 were so wildly inaccurate that they cast doubt on its forecasts for this year.

Of course, the French are not the only egregious liars projecting and forecasting any old crap to justify their bloated expenses... just look at what the IMF propjects for Ukraine's V-shaped recovery...(more on that later)

 

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Wed, 05/28/2014 - 10:07 | 4801580 nope-1004
nope-1004's picture

They didn't lie, they're just French!

 

Wed, 05/28/2014 - 10:12 | 4801596 Ghordius
Ghordius's picture

while that Court isn't, and the IMF staff is, eh? bah, is that anti-French sentiment still that strong, in the US? still butthurt because France did not join the party in Iraq?

soon you can give back the Statue of Liberty, or call it That Brass Lying Bitch

Wed, 05/28/2014 - 10:16 | 4801607 ShorTed
ShorTed's picture

Don't be so sensitive, just another incident in a long line of Western gov't bullshit, nobody saying France has a monopoly on that.

You can tell they're lying if their lips are moving.

Wed, 05/28/2014 - 10:19 | 4801615 Haus-Targaryen
Haus-Targaryen's picture

No --

The world is sick of the Robin William'S characeture of French foreign policy being accurate.  That is why most of the world hates the French. 

Wed, 05/28/2014 - 10:29 | 4801655 Ghordius
Ghordius's picture

"most of the world hates the French" - and loves... who? Germans? Americans? Chinese? Russians? Arabs? Japanese?

Wed, 05/28/2014 - 10:31 | 4801666 Haus-Targaryen
Haus-Targaryen's picture

Most popular country in the world last year was Germany,

http://www.bbc.com/news/world-europe-22624104

But I digress --

Its not that anyone loves each other more, but outside your "its a small world after all fantasy" there is a pretty universal hatred for the French -- the world over.

Wed, 05/28/2014 - 10:39 | 4801711 Overfed
Overfed's picture

They're only popular because of their beer. ;-)

Wed, 05/28/2014 - 11:19 | 4801922 Pool Shark
Pool Shark's picture

 

 

You can only take 75% of a man's earnings for so long before he decides to stop pulling, and jump into the wagon with the other loafers...

 

Wed, 05/28/2014 - 13:29 | 4802418 silverserfer
silverserfer's picture

pool shark, 75% is real tax rate here in USA if you look at imbedded tax that is in everything you buy and live off of.

Wed, 05/28/2014 - 11:25 | 4801945 SAT 800
SAT 800's picture

Yeah; but that's a hell of a good reason; and then there's the guns. Our main tank gun is built under lincense from Rheinmetal; it's a german patented product !!

Wed, 05/28/2014 - 11:27 | 4801955 TheReplacement
TheReplacement's picture

There's that and also this https://www.google.com/search?q=german+beer+wench&source=lnms&tbm=isch&sa=X&ei=Ov-FU7uML-HnsAT3nYLQCQ&ved=0CAYQ_AUoAQ&biw=1280&bih=618

At least French women are clean shaven and smell nice... oh wait.

Wed, 05/28/2014 - 11:54 | 4802072 TBT or not TBT
TBT or not TBT's picture

They went porn style decades ago, as to body hair. Did my time over there in 90's and naughties.

Wed, 05/28/2014 - 11:43 | 4802023 SilverSavant
SilverSavant's picture

Beers made in Oregon, Washington and Cal, are far far better than the German Beers.   Plus, there is far more variety and real competition.

Wed, 05/28/2014 - 11:54 | 4802074 SAT 800
SAT 800's picture

Oh boy, are you out of it. you need a trip to Germany; quick.

Wed, 05/28/2014 - 11:29 | 4801964 Ghordius
Ghordius's picture

"pretty universal hatred for the French"... hatred? how cartoonish

let's go through that list from BBC: 1st Germany, 2nd Canada, 3rd UK, 4th Japan, 5th France, 6th EU, 7th Brazil, 8th USA; 9th China...

Wed, 05/28/2014 - 11:39 | 4802011 FrankDrakman
FrankDrakman's picture

That's so Canadian, eh? "We're number two! We're number two!".

Ah, it don't mean sh*t.

Wed, 05/28/2014 - 11:57 | 4802087 TBT or not TBT
TBT or not TBT's picture

Who you like depends on how the question is posed, the context. Decontextualized, the question is meaningless. Same deal when applied to countries.

Wed, 05/28/2014 - 13:05 | 4802327 Jlasoon
Jlasoon's picture

Exactly, I live in Orlando. Every indigent from every walk of life has passed through this city. I just love it when they drop off the Brazillian "Favela" residents into Orlando. It's like a gateway into the future. 

Wed, 05/28/2014 - 11:41 | 4802019 SAT 800
SAT 800's picture

Oh, the native peoples in Tahitit just love them; some thing about stealing their Islands, or some story like that; I was there; and talk about "hate the French" sheesh. boy; they don't half fate the French.

Wed, 05/28/2014 - 11:26 | 4801951 SAT 800
SAT 800's picture

Go away. as a apologist for the EuroDisaster; you suck.

Wed, 05/28/2014 - 14:03 | 4802515 Analyse2
Analyse2's picture

@Haus-Targaryen : "most of the world hates the French"

You are wrong.

http://www.globescan.com/images/images/pressreleases/bbc2013_country_ratings/2013_country_rating_poll_bbc_globescan.pdf

See the reality pages 23-24

Wed, 05/28/2014 - 10:24 | 4801627 Ghordius
Ghordius's picture

I'm not being sensitive, I just note that 16bn are not that much, compared to the nearly 280bn France collects in taxes. I've seen way bigger budget estimate chaffs. this article is a good excuse to make fun out of the Hollande gov, yet with all that "French Kisses" humour that so many here like

Wed, 05/28/2014 - 10:25 | 4801634 Haus-Targaryen
Haus-Targaryen's picture

sorry, missing revenue projections by almost 5% is a colossal fuck up. 

Wed, 05/28/2014 - 11:28 | 4801961 TheReplacement
TheReplacement's picture

The projections were about the increase as a specific result of the higher taxes.  They missed by 53%.

Wed, 05/28/2014 - 11:55 | 4802071 cooky puss
cooky puss's picture

Folks, let's not get carried away. While one can all but agree 14b/5% is a screw up, let's not pretend we're shocked by the amount here. What about 9 trillion dollars. Doesn't ring any bell? Anyone?

http://www.youtube.com/watch?v=GYNVNhB-m0o

'Murica rules the fairy land by far!

Wed, 05/28/2014 - 12:00 | 4802097 TBT or not TBT
TBT or not TBT's picture

We print our own money. Top that, France!

Wed, 05/28/2014 - 12:12 | 4802148 cooky puss
cooky puss's picture

Touché!

Wed, 05/28/2014 - 10:26 | 4801636 ParkAveFlasher
ParkAveFlasher's picture

Welcome to the party, pal!

Wed, 05/28/2014 - 10:29 | 4801657 BigJim
BigJim's picture

If they just raise their taxes some more - maybe to some percentage above 100 - they'll get those missing billions.

I'm sure the wealthy in France have just as many spare kidneys as the rest of us. They can sell one each to do their patriotic duty to pay their 'fair' share, as calculated by St. Hollande and his merry band of equaliserz.

Wed, 05/28/2014 - 10:41 | 4801718 MasterOfTheMult...
MasterOfTheMultiverse's picture

Haha, that's awesome, looks like despite the tax hikes the wealthy French managed to wire 14bn to Swiss bank accounts in 1 year!?

Wed, 05/28/2014 - 11:35 | 4801988 SAT 800
SAT 800's picture

t he "wealthy" are different. Capital flight; always a good sign; means recovery is just around the corner; or some other corner, or somewhere down the road, or somewhere else; but it's definetely somewhere.

Wed, 05/28/2014 - 10:39 | 4801705 t0mmyBerg
t0mmyBerg's picture

Look, it is not that they lied.  They are just guilty of the same static revenue analysis idiocy of which all tax happy statist morons are guilty.  My favorite example is the transactions tax, one pushed largely by the French mind you.  They look at the volume of transactions and then the tax rate, multiply, et voila, there is your tax take right?  Wrong morons.  The moment you put the tax on is the moment that trade volume dries out like the puppy's water dish on a hot front porch.  Then that tax rate is multiplied by a very small number of transactions and the revenue generated is a fraction of the forecast.  Demunists in the U.S. also famously use this misleading approach, but then they are all intellectually dishonest scum, much like their statist French brethren.

Wed, 05/28/2014 - 11:05 | 4801860 Slave
Slave's picture

I wish this comment was at the top.

Side note: anybody know why there are so many statist dummies popping up on ZH lately?

Wed, 05/28/2014 - 11:48 | 4802042 Herd Redirectio...
Herd Redirection Committee's picture

Could be that it pays well.

Wed, 05/28/2014 - 18:33 | 4803329 August
August's picture

The pay's actually not very good, but today's job market is tough for those with bachelor's degrees and no real skills.

Wed, 05/28/2014 - 19:49 | 4803583 StychoKiller
Wed, 05/28/2014 - 11:00 | 4801823 forwardho
forwardho's picture

Hey, it could be worse.

France could pretend they can borrow 17 trillion in order to prop up a non-working society.

 

Wed, 05/28/2014 - 11:24 | 4801943 piratepiet
piratepiet's picture

So you are French ?  Who would have thought..

Wed, 05/28/2014 - 11:36 | 4801999 SAT 800
SAT 800's picture

Excuse ! Excuse ! We doan need no steenkin excuse, Froggy !

Wed, 05/28/2014 - 10:22 | 4801618 Bay of Pigs
Bay of Pigs's picture

Seriously? France's history is drenched in blood.

 

Wed, 05/28/2014 - 10:23 | 4801626 Haus-Targaryen
Haus-Targaryen's picture

I wish the French would have taught the Greeks how to riot back in 2012. 

We wouldn't have the problems we do today.

Wed, 05/28/2014 - 10:25 | 4801628 Dr. Engali
Dr. Engali's picture

Nice little straw man you threw out there Ghordius. You won't find anybody here that supports the invasion of Iraq,. Try harder next time.

Wed, 05/28/2014 - 10:36 | 4801684 Ghordius
Ghordius's picture

? it would be a straw man if there were supporters, here

I'm just pointing out that most anti-French propaganda in America comes from the time when Iraq was the issue... and certain Senators were very, very angry about France not joining

I definitely remember American TV news showing proud Americans pouring French wines in the gutter (I think it was FOX News & CNN). I definitely remember how Homer Simpson coined the term Cheese Eating Surrender Monkeys

you don't? here, read this: http://en.wikipedia.org/wiki/Freedom_fries

Wed, 05/28/2014 - 10:41 | 4801717 dontgoforit
dontgoforit's picture

Well guys, we all know that when it comes to discussing politicians it is a totally different thing than discussing the people of a given country.  I contend that without the politicos we would get along a whole lot better.  What poses for governments has throughout history been protagonist vs. antagonist - war after war.  For what?  If left up to the people, there would be a whole lot more cooperation than bloodshed, IMHO. 

Wed, 05/28/2014 - 11:52 | 4802059 Herd Redirectio...
Herd Redirection Committee's picture

The strange thing is... The external threat is one of humanity's greatest unifying factors.

So... No external threat (false or not, provided by politicos) means likely less co-operation.  But definitely less bloodshed!

Wed, 05/28/2014 - 12:48 | 4802275 TBT or not TBT
TBT or not TBT's picture

Thus "global warming/cooling", asteroid movies, alien invasion movies, zombie movies, "wars" against Bad Thing, monster movies.... Statists love any concept that let them demagogue people into collective sacrificial action toward statists' ends.

Wed, 05/28/2014 - 15:19 | 4802728 falak pema
falak pema's picture

without statists; even the philosophers who invented the concept of Republic, and proposed as first iteration the "philosopher king"; there would be no state. No Jefferson, no George Washington.

Now that only leaves two historical alternatives to mankind : anarchy and absolutist despotism.

So you have to know what you wish for.

The whole illusion of "we'd be better off without a state apparatus" is either an invitation to return to Jurassic Park; social darwinism, aka exacerbated anarchy organised by Oligarchs in "divide and ruin the plebes"; or to Julius Caesar-- organise the plebes to be our spear bearers-- or to be one of his bastard sons like Charles V, Louis XIV, Bonaparte, Hitler/Stalin or Potus à la GWB today.

Sisyphus stays our true father. If you want to avoid rolling that stone up the hill you better believe in civilzation's compromise and what it entails of the common people for it not to morph into the other two dystopias.

 

 

Thu, 05/29/2014 - 00:05 | 4804371 TBT or not TBT
TBT or not TBT's picture

Necessary evil, is a better formulation.

Wed, 05/28/2014 - 19:56 | 4803599 StychoKiller
Wed, 05/28/2014 - 10:43 | 4801724 insanelysane
insanelysane's picture

France wasn't there because they were making a mint selling crap to Iraq even though there was a UN embargo.

Wed, 05/28/2014 - 12:26 | 4802188 TBT or not TBT
TBT or not TBT's picture

And Saddam owed France and French companies 100 billion 2003 dollars for infrastructure and military goodies already delivered. Regime change was not France's friend. Very foolishly, they thought Bush/Powell were bluffing, that they would blink if France prevented full UN resolve to force Saddam to capitulate on WMD demands. Thus pussy ass Powell's tears on the floor of the assembly when France made its move clear. War was then guaranteed. Those brilliant French! They lost their 100billion precisely by their cynical actions aimed at NOT losing their 100 billion(and future projects already sold to Saddam, let us not forget).

Wed, 05/28/2014 - 13:39 | 4802444 falak pema
falak pema's picture

..War was then guaranteed... (Because France wouldn't join the neo-con party trumped up on WMD lies).

lol, so if I understand you GWB's criminal play was the FAULT of the French?

There are more head up ass people on ZH forum than there were waves tickling the sole of King Canute's feet on his English Beach when he defied Poseidon !

Wed, 05/28/2014 - 10:56 | 4801796 forwardho
forwardho's picture

Most Americans dislike of france goes back to WWII, when they rolled over like a nuetered dog to avoid damage to paris.

Vichy France speaks volumes.

Wed, 05/28/2014 - 12:18 | 4802167 TBT or not TBT
TBT or not TBT's picture

The French don't like each other very well either. Au contraire.

Wed, 05/28/2014 - 13:28 | 4802408 moneybots
moneybots's picture
May 10, 1940 Germany begins invasions of Belgium, the Netherlands, and France May 13 French and British troops move into Belgium but are trapped between German armies May 14 Luftwaffe bombs central Rotterdam; Netherlands surrenders to Germany May 27 British troops begin mass evacuation from Dunkirk June 3 Luftwaffe initiates air raids on Paris June 12 German forces penetrate France’s final lines of defense June 22 France signs armistice with Germany "With the British out of the way, the Germans began their final push against France. By June 12, German tanks had broken through the main fronts along the Somme River and the fortified Maginot Line, moving ever closer to their goal, Paris. During this time, the British vigorously encouraged France to resist at all costs. The new British prime minister, Winston Churchill, even flew to Paris himself to offer his personal encouragement. At the same time, though, the British government denied French requests for military assistance, wanting to conserve strength for Britain’s own defense in the near future. By this time, the size of the French army had been reduced by roughly half, and French leaders became resigned to an inevitable surrender. On June 22, 1940, France signed an armistice with Germany"
Wed, 05/28/2014 - 15:04 | 4802693 Analyse2
Analyse2's picture

“No one – least of all the French themselves – will try do deny the enormity of the defeat and the humiliation France suffered in 1940. French military leadership and strategy was tragically inadequate. But this does not mean that the French did not put up a “real fight”.

In the six week Battle of France, from May 10 to June 22, 1940, the French lost, in military personnel alone, 260,000 wounded and 108,000 killed. A total of 368,000 casualties in six weeks is not something to pass off lightly.

Yes, the Germans gave the French a terrible beating. But it took the combined strength of the United States, Great Britain, Soviet Russia, Canada, etc., to beat the Germans. It’s asking rather a great deal of France to match such strength against hers. ”

The US never faced mor than 15% of the Wehrmacht80% were in the East -  when France had to face alone 100% of Hitler's war machine in 1940.

In fact, the Germans would have walked straight over the British or American armies if any of these places would have been directly adjacent to France.

Wed, 05/28/2014 - 11:06 | 4801866 Dr. Engali
Dr. Engali's picture

We are not talking about propaganda put out for the sheep's consumption. Your initial comment was addressed to people here, and again I'll say you won't find supporters of the Iraq invasion or the majority of our politicians  here.

Wed, 05/28/2014 - 12:27 | 4802158 TBT or not TBT
TBT or not TBT's picture

I proudly support the Iraq invasion, which incidentally possibly would not have happened at all, if not for the French and their coalition lending hope to Saddam that there would be no invasion. I am not looking forward to a nuke or two lent by psycho states to terror nutters going off with a load of rad waste in our ports, or an EMP enhanced nuke or two going off atop some cheap IRBM a hundred clicks above our electricity and electronics dependent heads. After which I will have a very rough go of preventing cannibals from eating my family after overrunning our defenses/burning us out.

Wed, 05/28/2014 - 12:24 | 4802191 Sean7k
Sean7k's picture

Ghordius,

You have to admit, cheese eating surrender monkeys is a pretty good line. Second, since all US media outlets are controlled propaganda, associating it with US opinion is kind of foolhardy. I love travel in France and I love the people. However, there can be a certain degree of arrogance (much like the US) that trips them up. 

Still, the french leaders are like any leaders, they suck Elite dick. Therefore, Hollande is an asshole of the highest order. Not because he's french, but because he is willing to sell his people down the river into debt slavery for a change in mistress, a good meal and place to live. Whether it is Merkel, Obama, Cameron or any other (and the EU leaders are even worse), they are all willing to gut our children and grandchildren so a few satanic assholes can live in luxury, fuck and torture children, have blood sacrifies  and live as parasites on society.

So, how do we defend them? Why?

Wed, 05/28/2014 - 14:22 | 4802567 Zadig
Zadig's picture

The American anti-French sentiment predates Iraq.  De Gaulle kicking the US/NATO bases out of France in the 60's did not make the empire happy. 

The English also bizarrely cite France taking hundreds of thousands of casualties after being abandoned by their main ally as cowardice.  America has picked this up through cultural osmosis.

Wed, 05/28/2014 - 16:24 | 4802929 Urban Redneck
Urban Redneck's picture

And over two hundred years ago the frogs gave us Perfidious Albion. Anti-xxx propaganda stereotypes, what goes around comes around.

Wed, 05/28/2014 - 12:04 | 4802121 TBT or not TBT
TBT or not TBT's picture

Dr Engali, I supported the invasion of Iraq and still do. It's how we handled the aftermath that was stupid, but then you go to war with the Democrat party you have, not the one you might ideally prefer to have, ie one that puts American and allied interests firsts and doesn't hate our military.

Wed, 05/28/2014 - 10:25 | 4801633 NoDebt
NoDebt's picture

You didn't join us in Iraq because you couldn't get there.

Hey, whatever happened with that little excursion in Africa last year where we provided your transportation (as usual)?  Did you ever figure out who ate your gift camel?

 

Wed, 05/28/2014 - 10:27 | 4801648 Haus-Targaryen
Haus-Targaryen's picture

After the French military throughly killed off a bunch of enemy combatants (8 year olds), they backed up and went home. 

Wed, 05/28/2014 - 11:58 | 4802092 zerocash
zerocash's picture

The US has no transportation to the International Space Station (soon the Russian Space Station). So I wouldn't be so boastful.

Wed, 05/28/2014 - 12:09 | 4802136 TBT or not TBT
TBT or not TBT's picture

The Russians are into pharaohnic giga projects that stoke their pride. I thank them from the bottom of my heart banning NASA from the ISS and stopping shipment of their boosters, because now the fucking NASA/DOD wet blanket over that may finally end and open the door to innovation by the private sector.

Wed, 05/28/2014 - 11:29 | 4801965 SAT 800
SAT 800's picture

It's mostly anti-Euro sentiment; and good luck with your trolling for that useless crap paper and their useless un-elected dictator government in Brussels.

Wed, 05/28/2014 - 11:19 | 4801924 SAT 800
SAT 800's picture

LOL. thanks for the giggle in the morning. it's 5am here. New York has run Silver down below $19; just as soon as the grownups left the room; (LOndon Closed). Now, that's manipulation, goddamn it; I can tell because it's my money they're causing losses in ! Jebus freaking Christos; these damned silver manipulators; there're not supposed to do this after I buy my contracts. I'm about ready to join the official silver manipulators whinning and moaning club. If I don't go broke first. Grrrr.  As for Hollande; William Banzai has him down to a Tee; those europeans with their make believe-make believe money always make me feel a little better just after all we just have make believe money, and not make-believe-makebelieve money. I think I need a nap.

Wed, 05/28/2014 - 15:08 | 4802709 ATM
ATM's picture

Somewhere Art Laffer is laughing......

Wed, 05/28/2014 - 10:08 | 4801582 Dr. Engali
Dr. Engali's picture

Meh... let them eat cake.

Wed, 05/28/2014 - 10:23 | 4801623 NYPoke
NYPoke's picture

The Templars are still pissed.  Won't be any cake left to eat, just people.

Wed, 05/28/2014 - 10:09 | 4801583 williambanzai7
williambanzai7's picture

Wed, 05/28/2014 - 11:32 | 4801971 SAT 800
SAT 800's picture

Give 'em hell Bill.

Wed, 05/28/2014 - 14:07 | 4802530 silverserfer
silverserfer's picture

If it isin't glaringly obvious to all all political leaders job is to be hell bent on sucking the life, wealth, labor from the masses in any disguised, considerate, decetful, rightous, brutal, way possible. That is their intent. The faces that you see and hear on TV that you "elect" are put there for 1 main reason- they know the script and are VERY good liars. 

Wed, 05/28/2014 - 10:11 | 4801590 youngman
youngman's picture

Laffer must be laughing...hard

Wed, 05/28/2014 - 10:11 | 4801591 RadioactiveRant
RadioactiveRant's picture

They didn't lie, they're just like everyone else and delusional about the recovery thats just round the corner.

Wed, 05/28/2014 - 10:12 | 4801595 Chupacabra-322
Chupacabra-322's picture

Long on deodorant.

Wed, 05/28/2014 - 10:16 | 4801606 kliguy38
kliguy38's picture

no shit!!! and razors

Thu, 05/29/2014 - 07:15 | 4804794 Analyse2
Analyse2's picture

RACIST JOKES

Wed, 05/28/2014 - 10:13 | 4801598 NoDebt
NoDebt's picture

And the CONSEQUENCES of this will be..... nothing.  Just like with the trains that are too wide to fit through their stations.  In other words, SOP.  Nobody being shown the door, or having their pay docked for the blunder.  Just "Oh well, it didn't work out as expected.  Let's get started on next year's projections."

Wed, 05/28/2014 - 10:14 | 4801599 replaceme
replaceme's picture

In another 6 months that 16 billion will be touted as a great success.  Except they will pronounce it tooted.

Wed, 05/28/2014 - 10:14 | 4801601 B2u
B2u's picture

looking for the white flags waving

Wed, 05/28/2014 - 10:14 | 4801602 Save_America1st
Save_America1st's picture

long guillotines...

Wed, 05/28/2014 - 10:22 | 4801622 agstacks
agstacks's picture

"In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the... Anyone? Anyone?... the Great Depression, passed the... Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act? Which, anyone? Raised or lowered?... raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression. Today we have a similar debate over this. Anyone know what this is? Class? Anyone? Anyone? Anyone seen this before? The Laffer Curve. Anyone know what this says? It says that at this point on the revenue curve, you will get exactly the same amount of revenue as at this point. This is very controversial. Does anyone know what Vice President Bush called this in 1980? Anyone? Something-d-o-o economics. "Voodoo" economics."

Wed, 05/28/2014 - 10:39 | 4801709 TrustbutVerify
TrustbutVerify's picture

So, what are you trying to say?

Wed, 05/28/2014 - 11:32 | 4801970 agstacks
agstacks's picture

save ferris

Wed, 05/28/2014 - 11:33 | 4801978 FrankDrakman
FrankDrakman's picture

"Bueller? Bueller?"

of course the Laffer curve is correct, but Paul Krugman doesn't like the idea, so it officially doesn't exist.

Wed, 05/28/2014 - 12:37 | 4802234 TBT or not TBT
TBT or not TBT's picture

Yeah everybody remembers the Republican congress that signed off on FDR's first 100 days agenda and the following "bold and persistent experimentation". NOT. Was it over when the Republicans bombed Pearl Harbor? Was it over when the Republican party seceded from the union to preserve slavery? Was it over when they institutionalized a solid century of racism in the south(Jim Crow, lynchings, the KKK). Those terrible repub.....oh wait, that was all the Democrat party. Nevermind.

Wed, 05/28/2014 - 10:25 | 4801632 Azannoth
Azannoth's picture

So they raised taxes from 98% to 99% no wonder they ONLY got 16B out of it! I wonder how much of an icrease they'll get from hiking it to 99.2%? .. oh well they can always try going north of 100% :)

Wed, 05/28/2014 - 10:26 | 4801637 Spungo
Spungo's picture

How is 14 billion a black hole? Isn't the French GDP around 2.6 trillion?

Wed, 05/28/2014 - 10:26 | 4801641 ptoemmes
ptoemmes's picture

But it sounds so good when one lies in French.

Wed, 05/28/2014 - 10:28 | 4801651 holgerdanske
holgerdanske's picture

Which begs the question, if the leadership is corrupt and elections will not work, when is it defensible to violently resist?

Surely there must be a limit to the abuse the people will have to endure.

 

Are we close?

Wed, 05/28/2014 - 10:48 | 4801743 forwardho
forwardho's picture

The real question is...

Are you?

Wed, 05/28/2014 - 10:31 | 4801665 Quinvarius
Quinvarius's picture

It is more of a Socialist thing than a French thing. 

Wed, 05/28/2014 - 10:31 | 4801667 daxtonbrown
daxtonbrown's picture

Ruh Roh! A shortfall! Sounds like time to raise taxes!

Wed, 05/28/2014 - 10:46 | 4801736 dontgoforit
dontgoforit's picture

Interesting thing about politicians.  It never seems to enter their minds to take a pay cut, reduce the size of government, etc.  It's always, raise taxes, increase the size of government.  What a bunch of cry-baby morons.  And they 'lead' the people.  Yeah right.  I believe the internet generation is connected enough to begin now to see through these sleazy bastards.  They are unneeded, unnecessary and unwanted dinasaurs.

Wed, 05/28/2014 - 11:55 | 4802077 Herd Redirectio...
Herd Redirection Committee's picture

Ever since the recession started, I have waited for JUST ONE statist to say: "Hey, how about we stimulate the economy by cutting taxes?  As for our budget, if we didn't spend so much on interest payments, we could actually make do with the money coming in every year!"

Still hasn't happened.  Any where!

Wed, 05/28/2014 - 10:34 | 4801674 All is chosen
All is chosen's picture

Damn!

Four yrs ago I forecast that the always failing (& boringly so), socialist republic of France would take down the EZ in yet another misplaced display of Gallic pride and arrogance.  

What went wrong?

Ah yes,  my underestimation of the merde % that sentient beings could tolerate :(

Wed, 05/28/2014 - 10:36 | 4801685 rucunus
rucunus's picture

"The problem with the French is they don't have a word for 'entrepreneur'."

Wed, 05/28/2014 - 15:17 | 4802736 Analyse2
Analyse2's picture

As you know, "Entrepreneur" is precisely a French word (poor G.W.Bush ...)

Despite all these years of socialism, their economy is still doing OK (not great for sure).

The middle class still exists there and is vibrant.

The US infrastructure pale in comparison with what they have.

Health care is still free, education (even university) is still almost completely free.

They can still enjoy life with 5 weeks mandatory holidays.

Despite all of this, Public debt and budget deficit is still lower than that of the US.


France and the French have been around a long time in one form or another.

They have survived and they will survive, but they should get out of the EZ and EU. 

 


 

 

Wed, 05/28/2014 - 10:36 | 4801691 Smegley Wanxalot
Smegley Wanxalot's picture

Missed tax revenues aside, what about the forgone economic opportunities that resulted, and future forgone opportunities as businesses steer away from France.  Oh yeah ... that shit doesn't matter to bureacrats because only the private serfs suffer as a result.

Wed, 05/28/2014 - 10:37 | 4801696 TrustbutVerify
TrustbutVerify's picture

The Law of Diminishing Returns on those tax rates! US citizens should take note.  

Wed, 05/28/2014 - 10:46 | 4801732 forwardho
forwardho's picture

In 1774 They took note of a 3% tax on Tea.

 

Wed, 05/28/2014 - 10:38 | 4801704 youngman
youngman's picture

I think in the first year of the EU ..the French were over their limits of debt to GDP and other limits that they negociated...

Wed, 05/28/2014 - 10:39 | 4801708 kchrisc
kchrisc's picture

Who will go bankrupt first: Japan, the DC US or France?!

Wed, 05/28/2014 - 11:25 | 4801946 Fred123
Fred123's picture

The BRIC's first.......US last.

 

Wed, 05/28/2014 - 10:39 | 4801710 insanelysane
insanelysane's picture

It demonstates governments failure to understand economics.  Taxation is economics and economics is fluid.  This demonstrates how people changed their behavior based on the economics of the taxation.  The government projects were most likely based on some never ending trend line angled up (see charts for stock prices world wide).  The reality is that people avoided the taxes legally or illegally.  It is a teaching moment except that it won't be.

Wed, 05/28/2014 - 10:53 | 4801776 Azannoth
Azannoth's picture

The problem is most politicians do not know there is a difference between economics and politics

Wed, 05/28/2014 - 10:40 | 4801713 percyklein
percyklein's picture

Why do they (the French) put up with this? Actually, we have the same question: why do we put up with it here? TV? Lack of exercise? Tranqs?  Loss of willpower? Nobody reads any more? Women? What?

Wed, 05/28/2014 - 10:48 | 4801746 insanelysane
insanelysane's picture

Idiocy is spreading world wide.  It's the law of conservation of energy in action.  Food, water, and healthcare seem easy to obtain until the aquaducts start failing.

Wed, 05/28/2014 - 10:43 | 4801725 crazytechnician
crazytechnician's picture

They will Tax until there is no productive capital left - finally there will be nothing left to tax whatsoever.

Fuck Socialism.

Wed, 05/28/2014 - 10:47 | 4801744 Amish Hacker
Amish Hacker's picture

Wildly inaccurate economic forecasts are nothing new. These things aren't true predictions, just further attempts to shape public opinion. What's really worrying the French leaders is the recent election results, which show that control of public opinion is slipping away from them. Note the rising popularity of Le Pen and the National Front, which got 25% of the vote, and the wholesale rejection of "austerity," (If you give up half your pension, France will be the greatest country in Europe again.")

The political hacks are scared because people are wising up, and historically that's the prelude to rising up.

Wed, 05/28/2014 - 10:49 | 4801757 BeetleBailey
BeetleBailey's picture

<----FUCK THE FRENCH

<----THE FRENCH ARE FUCKED

Wed, 05/28/2014 - 11:13 | 4801904 forwardho
forwardho's picture

BB,  your first statement makes the second irrelevant.

Wed, 05/28/2014 - 18:58 | 4803423 BeetleBailey
BeetleBailey's picture

same difference, different merde

Wed, 05/28/2014 - 10:53 | 4801773 Itchy and Scratchy
Itchy and Scratchy's picture

Socialism is a riot ....unti the other guy runs out of $$$!

Wed, 05/28/2014 - 10:54 | 4801778 CrazyCatLady
CrazyCatLady's picture

They wanted to have a good reason to include the hooker and blow revenues

Wed, 05/28/2014 - 11:05 | 4801858 all-priced-in
all-priced-in's picture

In France and the USA - raising tax rates is not about revenue - it is about getting votes.

The "tax the rich" so we can give people that are poor "through no fault of their own" more free shit is a campaign slogan   - not an economic policy.

 

 

Wed, 05/28/2014 - 11:17 | 4801916 mt paul
mt paul's picture

they should sell Belgium

some bonds ...

Wed, 05/28/2014 - 11:19 | 4801923 Obamanism
Obamanism's picture

Make the politicians pay tax I bet the French government and civil Servants know all the Tax avoidance schemes or are exempt from paying tax. Make the Government and Civil service pay their tax.

Is it a 14 bn Euro miscalculation or is everyone now paying cash in hand?

If they reduced the tax they would have had 20 bn euros

Wed, 05/28/2014 - 11:22 | 4801927 falak pema
falak pema's picture

French budgets are all made by their top echelon "inspecteur des finances" coming out of the Top ten merit list of each ENA administrative school promotion final exam results. Its a tradition that goes back to our first president from that school Valerie Giscard D'Estaing (1974 vintage). With every new generation the budget deficit got bigger! 

Since that school was created we have seen more dumb asses making budgets in France than the CIA has seen spy wars being lost. The ENA elites have created the french banks Quant algos and created the generation of Jerome Kerviel, Bruno Iksil and Fabulous Fabrice Toure to run their trader desks.

With scions like that we get what we deserve. 

The most hilarious development in France is the Bygmalion scandal thats gonna bring Sarko's UMP party down. 

Now that is Oligarchy at its best; give em enuff rope and they hang themselves to it! 

Play on ENA !!!

Wed, 05/28/2014 - 11:27 | 4801956 tony wilson
tony wilson's picture

hollande is strong

ve kill der african

cos we fuckin well jewcan

pay us goy  or your gone.

Wed, 05/28/2014 - 12:08 | 4802132 orangegeek
orangegeek's picture

Germany should buy this country for a buck and end these nitwit culture.

Wed, 05/28/2014 - 14:01 | 4802506 Joebloinvestor
Joebloinvestor's picture

Hollande is too busy with his paramours.

What's sad/funny is the little shit Sarkozy is resurfacing.

Wed, 05/28/2014 - 18:18 | 4803279 Mike in Tokyo Rogers
Mike in Tokyo Rogers's picture

Shocked! Shocked! I tell you to find that there's been gambling going on here at this establishment! 

http://media.giphy.com/media/liAxnRq5qeZPy/giphy.gif

Thu, 05/29/2014 - 05:24 | 4804694 homonohumanus
homonohumanus's picture

IT would not surprise me, a French, if France was in fact the European with the greatest amount of debt, above the PIGS.

There are 2 things that are obvious in France:

How beautiful the country is as a whole, take a car go in different parts of France and you will understand what I mean.

The incredible amount of governemental spending, I don't have exhausitve knowledge of what available else in Europe but it is insane: the state (~) helps with loans, rents, runs appartment offices, pay for gruesome amount of useless associations, number of employees in local governement has exploded, there shit ton of people taking of the street gardening even in poor cities. People with kids (so around everyone) benefit from massive cuts when it comes to paying taxe income (one may wonder how it is fund...) and the list goes on forever.

 

Shortly put when the time is "right", for now the country is all too necessary in many regards (~primary US ally recent military operations, critical to EU advancements), but yes when the time comes I would be surprised if the real accounting of the country is any better than say Japan., it is a question French should ask themselves how could it be better? I mean tourism is profitable, Japanese entreprises have massive difficulties but look at France and explain me how it could be any better than Japan?

 

I wish my wife (not French) were not that insistant in wanting to stay as I would get the fuck out of here no matter my sincere opinion that France should be one of best place to live on this earth... potential is there to say the least.

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