Hollande scraps tax breaks on overtime

Article reported that France’s socialist government announced on the 17 July 2012 that it was tearing up one of the key labour market measures introduced by former centre-right president Nicolas Sarkozy under his once-winning slogan: 'Work more to earn more'.

The reimposition of income tax and social contributions on overtime as part of a supplementary 2012 budget going through the socialist-controlled National Assembly was the latest in a series of partial reversals of Sarkozy-era reforms since François Hollande won the presidency in May 2012.

Mr Hollande wss fulfilling an election promise to reintroduce the taxes for all but companies employing fewer than 20 workers, driven by the need to meet France’s commitments to reduce the budget deficit – and the belief that it undermined job creation.

ESO: Background information: Wealthy hit hardest as France raises taxes http://www.europeansources.info/record/wealthy-hit-hardest-as-france-raises-taxes/

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