On our series analysing how France has suffered as a result of the reckless economic strategies, we meet small business owners in Toulouse who are crippled by payroll taxes that stifle growth and still fail to pay for the lavish benefits system
‘I’ve had enough,” says Charline Petit, the young co-owner of the bagel café on Place St-Aubin in central Toulouse. “I’ve been at this for three years, but I haven’t been able to pay myself since January. I can’t carry on like this, so I’m closing down.
“Everything is taxed. You can’t move without being taxed. Even when you are not making any money, you are taxed. I had to lie about my income to rent an apartment. So then the tax authorities said I had not been declaring enough. I was taxed again. If I stopped working, I would get all kinds of benefits, but as a business person, I get nothing. You are better off unemployed.”
To say “nothing” is possibly a bit of an exaggeration. In return for all those taxes, the French state funds a widely admired universal health service – better on many measures than our own National Health Service – and some of the most generous pension arrangements anywhere in the world.