Nicolas Sarkozy has announced plans to impose a tax on financial transactions. The French president said a new 0.1% tax would come into force in August regardless of whether or not the European Union agrees to impose a 'Tobin tax' across the EU. The French tax will apply to share purchases, including high frequency trading, and CDS transactions. Unlike the European commission proposal, it will not apply to bond trading. Sarkozy also announced plans to raise VAT to 21.2% from 19.6% in October to fund a cut in national insurance-type charges on companies. He hopes the changes will boost job creation and discourage French industry from moving abroad. "We have to re-ignite growth," Sarkozy said. "We have to catch up in Europe and in the world. Our market share is declining. If we continue to burden our companies with charges that aren't theirs to pay, how can we compete?" http://www.guardian.co.uk/business/2012/jan/30/france-tobin-tax-nicolas-sarkozy?newsfeed=true Imposing the financial transaction tax and a rise in VAT. France is at the forefront of the socialist revolution. How will all this turn out in the long run? Keep taxing the shit out of everybody and providing welfare ? What will eventually happen?