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| Version 2 | Version 3 |
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| 'Pigeons' in a flap over François Hollande tax plan | 'Pigeons' in a flap over François Hollande tax plan |
| (30 days later) | |
| He has stood firm on raising tax on millionaires, insisting the wealthiest should bear the brunt of France's harshest budget for 30 years, but one of François Hollande's key new taxes on businesses may be blown off course by an uprising from a flock of "pigeons". | He has stood firm on raising tax on millionaires, insisting the wealthiest should bear the brunt of France's harshest budget for 30 years, but one of François Hollande's key new taxes on businesses may be blown off course by an uprising from a flock of "pigeons". |
| For days young internet entrepreneurs and heads of web startups have dominated social network sites with a campaign against the French president's tax rises on small businesses. They call themselves "Les Pigeons" – French slang for mugs or suckers – and use a black and white logo of a frowning bird. | For days young internet entrepreneurs and heads of web startups have dominated social network sites with a campaign against the French president's tax rises on small businesses. They call themselves "Les Pigeons" – French slang for mugs or suckers – and use a black and white logo of a frowning bird. |
| They are protesting against aspects of Hollande's tough crisis budget for 2013 which, they say, are unfairly skewed against the small business sector and would kill the startup boom, forcing young digital innovators to flee France. They argue that a €2bn (£1.6bn) increase in capital gains taxes on equity sales would force entrepreneurs who sell their new companies to pay up to 58% to the state, discouraging them from getting new ideas off the ground in the first place. | They are protesting against aspects of Hollande's tough crisis budget for 2013 which, they say, are unfairly skewed against the small business sector and would kill the startup boom, forcing young digital innovators to flee France. They argue that a €2bn (£1.6bn) increase in capital gains taxes on equity sales would force entrepreneurs who sell their new companies to pay up to 58% to the state, discouraging them from getting new ideas off the ground in the first place. |
| The Socialist government has prided itself on being immune so far to what it dismisses as the grumblings of the mega-rich against the budget. The main focus of complaint was the 75% tax on income above €1m, although the measure is hugely popular among the public. | The Socialist government has prided itself on being immune so far to what it dismisses as the grumblings of the mega-rich against the budget. The main focus of complaint was the 75% tax on income above €1m, although the measure is hugely popular among the public. |
| The Pigeons' revolt is different: it has dominated the airwaves and started to severely embarrass the government, leading to a call from the finance minister, Pierre Moscovici, on Thursday for an emergency meeting with young entrepreneurs and a vow to tweak the plans. | The Pigeons' revolt is different: it has dominated the airwaves and started to severely embarrass the government, leading to a call from the finance minister, Pierre Moscovici, on Thursday for an emergency meeting with young entrepreneurs and a vow to tweak the plans. |
| Dominique Seux, a columnist at the French business paper Les Echos, said the public did not care and the Socialist political class was untroubled when unhappiness at the budget was coming from big earners annoyed at the 75% tax rate. But "it was something else" when the revolt came from likeable and more ordinary young internet entrepreneurs "who have a friendly image, who break norms, who haven't gone to [elite graduate school] ENA, and who talk like everyone else". | Dominique Seux, a columnist at the French business paper Les Echos, said the public did not care and the Socialist political class was untroubled when unhappiness at the budget was coming from big earners annoyed at the 75% tax rate. But "it was something else" when the revolt came from likeable and more ordinary young internet entrepreneurs "who have a friendly image, who break norms, who haven't gone to [elite graduate school] ENA, and who talk like everyone else". |
| Moscovici said it was right to have a rethink if the measures "shocked" or "dissuaded investment by young innovative companies". | Moscovici said it was right to have a rethink if the measures "shocked" or "dissuaded investment by young innovative companies". |
| "We don't want to give the impression that we want to punish the Pigeons," Hollande's office told Reuters. "We'll find a solution … the Pigeons should return to their nest." | "We don't want to give the impression that we want to punish the Pigeons," Hollande's office told Reuters. "We'll find a solution … the Pigeons should return to their nest." |
| The likely climbdown comes less than a week after the government unveiled a budget making €30bn of savings needed to cut the deficit. The mood in the French business community is already tense, with companies complaining they are struggling to compete with German and other rivals because of France's high labour costs – a thorny issue that Hollande is to address in coming weeks. | The likely climbdown comes less than a week after the government unveiled a budget making €30bn of savings needed to cut the deficit. The mood in the French business community is already tense, with companies complaining they are struggling to compete with German and other rivals because of France's high labour costs – a thorny issue that Hollande is to address in coming weeks. |
| Laurence Parisot, the head of the business leaders union Medef, said this week her members had never been so angst-ridden and denounced what she called a form of anti-business "racism" in France. | Laurence Parisot, the head of the business leaders union Medef, said this week her members had never been so angst-ridden and denounced what she called a form of anti-business "racism" in France. |
| The Pigeons' campaign has had detractors. An open letter from other small business leaders in the daily Libération said: "We don't see ourselves as a caste of superior citizens who should benefit from favourable tax treatment." | The Pigeons' campaign has had detractors. An open letter from other small business leaders in the daily Libération said: "We don't see ourselves as a caste of superior citizens who should benefit from favourable tax treatment." |
| Fleur Pellerin, the minister for innovation and small business, told French radio one possible option was to offer tax breaks for any entrepreneur looking to reinvest more than 80% of any capital gains. | Fleur Pellerin, the minister for innovation and small business, told French radio one possible option was to offer tax breaks for any entrepreneur looking to reinvest more than 80% of any capital gains. |
| It is not yet clear how much revenue will be lost if the government waters down the measure. | It is not yet clear how much revenue will be lost if the government waters down the measure. |
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