After 75% rich tax, now French government wants to tax beer

[hellheaven1987]

Taxes on beer are set to increase by more than 160% under a controversial new law being pushed through the French parliament.

The tax rise will add an estimated five euro cents (four pence; six US cents) to a half-litre glass of beer.

President Francois Hollande's government said the policy would raise 480m euros to invest in social projects for young people and the elderly, and ministers say the move will help reduce alcohol and tobacco consumption.

But trade groups have argued that the rise could damage the beer industry in France and affect breweries across Europe.

Interesting however.

Simon Spillane, a senior adviser for the Brewers of Europe organisation, says the added cost to a half-litre will be more like 30 euro cents, and comes at a tough time for brewers.

"This is a real blow for the beer industry," he says.

"Across the EU we have already seen beer production fall by 6% and consumption fall by 8% since the start of the economic crisis."

Businesses in Belgium and Germany that trade with France are likely to be worst affected, he argues, as well as smaller family firms and microbreweries that focus on quality rather than quantity, though an amendment currently being discussed is aiming to exempt small independent breweries from the tax rise.

There could also be an impact on British breweries that export across the English Channel.

"Beer represents 10% of UK food and drink exports so it's clearly a key to economic recovery there," according to Mr Spillane.

"British companies export 28 million pints of beer to France every year and we need to keep the industry alive."

The number of Brits making the trip to Paris could also fall, he warns.

"The booze-cruise phenomenon is already less popular than it used to be five or 10 years ago, but we can expect travellers who make the journey over the channel to find higher prices than there were in the past."

Many French drinkers said they were resigned to the idea of higher prices.

"It will just be a few euros here and there, you won't notice really, even if you drink too much!" said Lea Rouge, from Paris. "I still don't agree with the policy though, it is yet another regulation that we don't need."

"I support the government asking people to contribute more," said Daniel Astrid, who was born in France but now lives in Canada.

"But you know you just have to be sure about what they are going to spend it on. They may say it is to help people but then go and spend it on weapons and whatever else they want."

The higher tax rate was agreed by France's National Assembly on Tuesday but it stills need final approval from the country's second chamber, the Senate, which is expected to vote on the policy soon.

There is unlikely to be tough opposition, as it is made up of a majority of Socialist politicians who support President Hollande.

So far there are no signs that the policy will be extended to the country's most beloved beverage - wine.

Source

Although an outraged new tax it seems that it would hurt French local beer producers less as most beer in France is imported from other countries - which in other words, it would hurt the beer producing industry in the neighbors of France most, particularly UK and Germany. Adding the fact that French government is not planning to tax French wine, which mostly produced in France itself, we probably can view this new tax is more a twisted form of tariff against beer in France - since most beer are came from foreign countries, it is ok to rise their tax so French citizens would prefer local produced wine in the end. I don't know, it feels like France is playing the dirty protectionism game again regardless how bad the economy of EU is now...

[B. W.]

Hmmm, I think the big loser here could turn out to be France. What if Germany and England impose similiar taxes on French wine in retaliation?

If that happens the big winners will be Italy and Spain who will undoubtably be after that opening in the market share.

Nothing like a tarriff war to improve relations within the EU.

[The Dude]

Elects a socialist president.

Wonders why everything gets taxed.

Douchebag Jacques the Frenchman.

[Slaytaninc]

Oh look, a regressive tax.

Who is this supposed to be punishing anyways? Because it isn't punishing the "evil" rich.

[Prosaic Visitant]

Taxing alcohol?

They have gone too far.

[removeduser_4536284751384]

In your OP 160% = 60%, and 6 c in a pint that costs €3-5 is nothing.

Like all alcohol taxes of this nature, and unlike other taxes, I don't think the price is going to be passed onto the consumer.

[Manuel I Komnenos]

Beverages were extra taxed in Greece as well. Seems like the Greek guinea pig did fine, so, it's time to extend those "successful" measures to the rest of Europe as well.

[Condottiere 40K]

Sales of up market beer shouldn't be effected.

[War lord]

I don't see how taxing non-essentials like beer is bad, better then water charges,

[HissingNewt]

I don't see how taxing non-essentials like beer is bad, better then water charges,

It's bad in this case because it seems like a protectionist move, and I doubt it would even have that much of an effect. Beer is a fairly elastic good, and the extra revenue here can't be worth the risk of the UK and Germany taxing French wine as mentioned in the OP.

[Emperor Arcturus Mengsk]

That's it, leaving for France tommorow, VIVA LA REVOLUTION

[removeduser_487563287433]

God, yet another non-thread from Hellheaven. Taxes on luxuries are so completely standard that they are banal.

It's bad in this case because it seems like a protectionist move

How? Beer isn't big at France to begin with, and it doesn't just affect imports.

[Thorn777]

Howabout the new Dutch rightwing-liberal/social-democrat coalition tripling the privatized healthcare insurances for all those slightly above medial income? Thats thousands a year. The real earners above the 70k bracket are of course being excempt again. They dont have to pay more than those puny middleclassers. And at the other end, the unemployed have to pay slightly less than before and seen as a victory of the social-democrats, which is berridling me since in Germany for instance healthinsurance is completely free for unemployed.

In the meanwhile the middleclass so affected by this draconian measure and the media is pointing at those unemployed again, and their Red Rabble socialist party doing it all to them.

Also workers protection is going to be loosened once more, in full accordance with unemployment-insurance going to be shortened to one year, after which its just going to be welfare.

But of course everybody will be better off because regressive income-taxes will be lowered by a bit, as the upper bracket will be lowered.

The social-democratic party in Holland is celebrating this as a victory, while the rightwing-liberals are portrayed as the party that had to go with "this socialist" plan otherwise the social-dems would have to go form a coalition with the Socialist Party(the actual left).

Rather have a Hollande type taking his socialist roots a bit more srsly, protecting his domestic industries and taxing those where it actually makes sense. The Dutch social-dems have clearly betrayed the middle-class and made sure everybody will hate them and the unemployed for the next few election-cycles. I wonder where this stupidity comes from, or if its just intended once again.

Neo-liberalism full ahead, no looking back.

[removeduser_487563287433]

The real earners above the 70k bracket are of course being excempt again. They dont have to pay more than those puny middleclassers.

Firstly €71k per annum isn't going to rocket anybody out of the middle classes - you seem to have a warped understanding of how far that money is going to get a family. Secondly if they are paying the same as under-€70k earners then they are not exempt, as you claim.

[Thorn777]

Firstly €71k per annum isn't going to rocket anybody out of the middle classes - you seem to have a warped understanding of how far that money is going to get a family. Secondly if they are paying the same as under-€70k earners then they are not exempt, as you claim.

Firstly your style of selective reading or talent for misinterpretation once more shines trough.

Anybody above "medial income"(33k).

Then the top-bracket is capped, just like in pay-roll taxes for instance. The amount payed into the insurance per person is capped. Nothing really complicated or new. A way how many of these insurances around the west became underfunded.

They are going to pay "more" if they hadnt already payed the maximum that is pushed forward now, but of course its still regressive, when you compare people making several 100k a year, of which there are many in Holland, and a two earners family household easily getting above the medial, or twice medial income.

The SP plan which wants to bin this cap, are estimated to cut the percentage of income payed for health insurance in half. Just by getting rid of the cap and actually have the wealthy pay a fixed percentage of their income. Like anybody ing else.

[removeduser_487563287433]

None of that changes the fact that you were wrong to claim €70k+ earners are exempt from the tax.

[Thorn777]

None of that changes the fact that you were wrong to claim €70k+ earners are exempt from the tax.

Of course they pay the tax(duuuh), just in a same old regressive way, while this new policy is celebrated as a progressive tax that affects the middle-class drastically. The buck stops at the 70k+ earners and the middleclass is paying vastly more because of that.

All this is then supposedly compensated by lowering income taxes, where once again the big earners profit most as they go from 52% to 49%.

So could you plz stop deliberatly misunderstanding things and ignoring the entire premise of the post. Its really just clever clogs and childish.

[Menelik_I]

If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it ... kind of sums up the Holland Presidency.

[removeduser_487563287433]

Yes, well, that was hardly a secret when the French elected him.

[Menelik_I]

Yes, well, that was hardly a secret when the French elected him.

Nobody said it was a secret, nor does the fact that it was open makes it less bad, since it means that both Holland and a wide section of the French electorate suffer for delusion.