Financial Times FT.com

Right attacks Sarkozy tax plan

By Ben Hall in Paris

Published: September 5 2008 23:26 | Last updated: September 5 2008 23:26

President Nicolas Sarkozy triggered a backlash from his centre-right party this week after his government agreed to tax savers and investors to fund a new welfare benefit for the poor.

Senior figures in the governing UMP party openly criticised the president’s plan to raise €1.5bn ($2.1bn, £1.2bn) a year, saying it contradicted the president’s promises to reduce the tax burden and would hit many of the centre-right’s natural supporters.

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