PARIS (AFP) — A plan to switch the financing of health care from payroll charges to increased sales taxes to help businesses withstand competition has enlivened legislative elections in France with charges the poor will suffer.
In calling for debate on the measure, right-wing Prime Minister Francois Fillon sparked an outcry from the left, with the Socialist Party accusing him of aiming to finance tax breaks for the rich with money from ordinary workers.
Fillon on Tuesday asked two members of his cabinet, Economy Minister Jean-Louis Borloo and Secretary of State for Prospects and Evaluation Eric Besson, to assess the chances of applying what is known here as a "social" sales tax.
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The debate in France is likely to be followed with interest by countries throughout Europe facing deep problems in financing welfare, whatever their tax structure. Germany has begun using an increase in sales tax as part ...
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