Monday, Jan. 12, 1948
Test
Doughty Premier Robert Schuman's government had beaten the Communist "insurrection" (TIME, Dec. 8). Last week it survived its second major test. The test came over Schuman's drastic measures to fight French inflation.
In the first crisis, he had been backed by the Gaullists. Last week, both the "Cocos" and the Gaullists were against him. Their motives were different, but both attacked the centrist government to win popularity and power (Paris wiseacres predicted that De Gaulle would make his bid in March or April). The strange political bedfellowship was caused by the old political axiom that you can always catch a vote by attacking higher taxes.
Premier Schuman proposed a new "supertax" of 20% to 40% on incomes over 450,000 francs ($3,778). The relatively rich people affected could either pay the tax or buy an equivalent amount of government bonds. The revenue, and the resulting cut in French purchasing power, was estimated at 150 billion francs.
Even middle-roading Assemblymen thought this was too strong. The government offered a compromise figure of 125 billion. M. Schuman, in effect, issued an ultimatum: take it or leave it. He forced a vote of confidence on the issue. M. Schuman won; his bill was passed. On each of five separate amendments, the Assembly voted for the Premier. His majority was not large, but it never fell below 33 votes.
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