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)