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)

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
nope-1004's picture

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


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

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.

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. 

Ghordius's picture

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

Haus-Targaryen's picture

Most popular country in the world last year was Germany,

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.

Overfed's picture

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

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...


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.

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 !!

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.

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.

SAT 800's picture

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

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...

FrankDrakman's picture

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

Ah, it don't mean sh*t.

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.

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. 

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.

SAT 800's picture

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

Analyse2's picture

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

You are wrong.

See the reality pages 23-24

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

Haus-Targaryen's picture

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

TheReplacement's picture

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

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?

'Murica rules the fairy land by far!

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.

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!?

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.

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.

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?

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.

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.


piratepiet's picture

So you are French ?  Who would have thought..

SAT 800's picture

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

Bay of Pigs's picture

Seriously? France's history is drenched in blood.


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.

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.

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:

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. 

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!

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.

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.



TBT or not TBT's picture

Necessary evil, is a better formulation.