‘We work half the year for the govt’

Workers in France spend more than half the year paying the state, said the Contribuables Associés in their latest ‘libération fiscale’ campaign.

The 146,000-strong body, which describes itself as the largest non publicly-funded association in France, has set July 12 as the day that workers stop paying social charges and taxes and start earning money.

The group has marked the day since 1999. It varies year on year between July 10 and 17, they say, while in Britain it is June 13 and the European average is June 18. It is found by working out how long a person would have to work to pay off their annual charges and tax each year.

Spokeswoman Benoîte Taffin said the figures were taken from reports by the Organisation for Economic Co-operation and Development (OECD).

She added: “The campaign varies year by year. In 1999 we highlighted the issue by visiting the finance ministry dressed up as prisoners with balls and chains – with the names of taxes written on the balls. This year we focussed on an advertising campaign.”

The association says France’s government administration costs more than any European country’s apart from Sweden’s. However at current trends France could overtake the Swedes by 2010. Public spending has been more than half of GDP since 1982.

Ms Taffin said: “There are two main reasons for the cost of the French state. Firstly it is very interventionist. It gets involved in every aspect of life. One example would be business subsidies, or the cost of state education, which is very heavy as there is little private education. The state also pays out a lot in social security.

“Secondly there is a lot of waste. Studies by economists have shown that even if other countries offered the same level of intervention as France, they would cost less to run.

“This impacts on spending power, and it is one of the reasons France has declined in terms of national productivity. It means our talented youth, our entrepreneurs, our wealthy people, go abroad instead.”

The spokeswoman said President Sarkozy had brought in useful reductions in some areas, including inheritance tax, but had not made significant public spending cuts which would fuel lower taxes long-term.

“If you don’t decrease spending then you’ve still got to find the money somewhere,” she said. “What he’s done is in the right direction, but is far less than is needed.”

She added the Attali Commission, which reported on economic reform earlier this year, was a mix or good and bad ideas. “For example reducing civil servants is a good idea, but building new eco-towns is crazy and would cost too much.”

Photo: The group's advertising campaign