France finally abandons that 75 percent tax on the wealthy

posted at 5:01 pm on March 24, 2013 by Erika Johnsen

As one of his many supposedly social-justice oriented campaign pledges, French President Francois Hollande proposed a 75 percent income tax on people making more than a million euros, but he’s been struggling to make it happen ever since he entered office — but reports of a growing exodus of the wealthy, an inopportune business climate, and the top French court’s recent rejection of the idea have finally persuaded the government to throw the proposal onto the intellectual rubbish heap where it belongs.

But don’t get too excited — we’re talking about a government run by Socialists with a capital “S” here, after all:

The French government threw in the towel Friday on plans to levy a 75% tax on the rich, a key election pledge of President François Hollande, and acknowledged it wasn’t clear how it would hike taxes on the country’s wealthiest citizens.

After receiving advice from the country’s top administrative court, French finance minister Pierre Moscovici said that the top tax rate applied to earned income couldn’t exceed 60%, and that the maximum rate on a taxpayer’s revenue could not rise above 66% overall. …

The decision definitively kills the controversial tax plan that some real-estate agents say has already helped fuel an exodus of France’s super rich, while some corporate executives say it has weighed on their ability to attract and retain highly-paid workers.

Which is such a shame, because I’m sure the 75-percent plan was a good-faith, substantive effort to legitimately raise money to solve the country’s debt crisis, and not just a low-down populist gesture to stick it to those filthy rich, right? Well…

The 75% tax was expected to apply to around 1,500 people and yield some €210 million in 2013—a highly symbolic fraction of the country’s budget of about €300 billion.

Typical. France’s economy is stalling out; unemployment is above ten percent; they’re breaking their eurozone-pledge to keep the deficit at less than three percent of GDP and avoiding austerity measures; and Hollande’s popularity recently plummeted to the lowest level in three decades. How do you say “strugglebus” in French?


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Once again, populism is a bust.

thebrokenrattle on March 24, 2013 at 5:08 PM

great so his approval rating is what Obama’s would be if he wasn’t treated like a Kardashian or if he was a Republican being berated by the media about his failures. You’d think there’d be enough white flag factories to keep the French busy and working, but their French so they’re never happy unless they’re unhappy.

gsherin on March 24, 2013 at 5:11 PM

That’s about a 7th of one percent.

birdhurd on March 24, 2013 at 5:12 PM

The marxists always argued that socialism would win because the program of free market capitalism would always induce an overwhelming backlash.

Seems like the socialists just learned that socialism — when not backed by absolute armed force — induces its own devastating backlash.

Robert_Paulson on March 24, 2013 at 5:12 PM

The word “Million” gets used a lot among politicians.

Next..

Mexico imposes a 75% taxes on anyone making more then a million Pesos.

Electrongod on March 24, 2013 at 5:18 PM

are they abandoning utopia now? they were on the verge of perfecting their people!

tom daschle concerned on March 24, 2013 at 5:20 PM

But the stage is set. Don’t you see it?

The LIV isn’t going to care about the revenue vs the total spending. Nope, all they’re going to hear is that he got the 75% tax on rich people in place, and then the courts stopped him….and oh by the way, the economy sucks and your benefits are going to be cut.

“So blame the rich and the courts. Not me.”

BobMbx on March 24, 2013 at 5:25 PM

…so this means JugEars will now double down on the millionaires and billionaires !

KOOLAID2 on March 24, 2013 at 5:35 PM

maybe France can import some more African mohamet adherents?

tom daschle concerned on March 24, 2013 at 5:41 PM

Next move is to take 75% of bank accounts.

sentinelrules on March 24, 2013 at 5:46 PM

Looks like the Leftists still haven’t found people smart enough to make it work. Well, I’m sure the NEXT attempt will be the charm.

Dumbassery knows no bounds.

jnelchef on March 24, 2013 at 5:51 PM

—Hypocrite lecteur,—mon semblable,—mon frère!

(“Hypocrite -r leader -My twin, -my brother.”)

Baudelaire knew what was coming.

profitsbeard on March 24, 2013 at 5:55 PM

could not rise above 66% overall

So they only want to steal 2/3rds of someone’s income, that’s much more reasonable!

mudskipper on March 24, 2013 at 6:07 PM

have finally persuaded the government to throw the proposal onto the intellectual rubbish heap where it belongs.

Erika, you say they’re throwing the proposal in the intellectual rubbish heap (which implies they are entirely discarding the concept of punitive taxes) and then go on to say they’re still trying for 2/3 of a taxpayer’s total revenue, which definitely means that they haven’t given up on the idea of punitive taxes. So which is it?

Scopper on March 24, 2013 at 6:13 PM

Zee French surrender, again.

msupertas on March 24, 2013 at 6:21 PM

What happened? Rich liberal socialists didn’t want to pay their fair share?

Mahdi on March 24, 2013 at 6:25 PM

So they only want to steal 2/3rds of someone’s income, that’s much more reasonable!

mudskipper on March 24, 2013 at 6:07 PM

That’s close to California’s effective rate – including federal, state, local and sales taxes!

honsy on March 24, 2013 at 6:25 PM

here is a wild thought, tax everyone and I mean everyone at the same rate a FLAT RATE. minimum deductions, maybe tax forgiveness below the poverty level

RonK on March 24, 2013 at 6:33 PM

maybe tax forgiveness below the poverty level

RonK on March 24, 2013 at 6:33 PM

No way! Even the poorest Americans have stuff that most Africans can only dream of! No matter how poor someone is, there must be a one-hundred dollar minimum tax so they have some skin in the game. They can buy just a few less lottery tickets, cigarette packs, beers, and marijuana joints each year and come up with that amount easily.

honsy on March 24, 2013 at 6:38 PM

No way! Even the poorest Americans have stuff that most Africans can only dream of! No matter how poor someone is, there must be a one-hundred dollar minimum tax so they have some skin in the game. They can buy just a few less lottery tickets, cigarette packs, beers, and marijuana joints each year and come up with that amount easily.

honsy on March 24, 2013 at 6:38 PM

Yep. Only people that pay income taxes should get to vote on income taxes. Ditto sales taxes, property taxes, etc. Anything else is legislated robbery.

slickwillie2001 on March 24, 2013 at 7:00 PM

maybe tax forgiveness below the poverty level

RonK on March 24, 2013 at 6:33 PM

For unemployment only, and demand documentation. And yes, I would be very much willing to comply with my own rule. Otherwise politicians can deliberately tank economies to drain the voting pool.

MelonCollie on March 24, 2013 at 8:32 PM

Resist We Much on March 24, 2013 at 7:45 PM

Actually, it’s very much on topic. Does anybody here seriously believe that Hollande didn’t clear his brainstorm with Brussels first?

cheers

eon

eon on March 24, 2013 at 8:43 PM

Let’s face it; French people are effin stupid. Has this country produced anything of value in a couple of hundred years?

WhatSlushfund on March 24, 2013 at 9:26 PM

Well, to answer my own question, I guess I’ve seen some ok French porn. But what else?

WhatSlushfund on March 24, 2013 at 9:28 PM

I apologize for spamming, but they’re also BORING. HAers who have been there should chime in. THESE PEOPLE DON’T KNOW HOW TO PARTY! They sit around in cafes like neutered cats and stare off into the distance. They are worthless.

WhatSlushfund on March 24, 2013 at 9:35 PM

We spent so much American blood and treasure and lives freeing these looney Europeans from totalitarianism only to see them embrace it willingly/eagerly! Someone tell me why we should not have just let Hitler ans Stalin have them. They would have gotten where they apparently want to be much sooner!

devan95 on March 24, 2013 at 10:09 PM

devan95 on March 24, 2013 at 10:09 PM

As was said on another thread, right now Europe looks a lot like it might have if Germany had won the last two wars.

Or if the Soviet Union had won the Cold War, for that matter.

Which Russia, under Putin, still might.

clear ether

eon

eon on March 24, 2013 at 10:16 PM

UPDATE: We fought the Japanese in World War II because they attacked us. Japan then became a free market, capitalist, democracy. Europe, on the other hand, has gone entirely in the opposite direction. Most, if not all, of their governments have socialist or fascist cradle to grave entitlement systems and, with France and Britain leading the way, confiscatory attacks on the wealthy that make our efforts to punish success look positively amateurish. We spent so much American blood and treasure and lives in World War II freeing those looney Europeans from totalitarianism only to see them embrace it more willingly and eagerly every day. Someone tell me why we should not have just let Hitler and Stalin have them. They would have gotten where they apparently want to be much sooner and many Americans would not have died in vain.

devan95 on March 24, 2013 at 10:33 PM

Australian Carbon Tax Responsible for Damaging 80% of Australian Small Businesses http://goo.gl/0wLwJ

Resist We Much on March 24, 2013 at 10:52 PM

Let them eat cake.

mmcnamer1 on March 25, 2013 at 6:49 AM

How do you say “strugglebus” in French?

http://www.dailymail.co.uk/news/article-530403/France-protects-dreaded-English-language-banningpodcasting.html-fast-food-

(I HATE Windows 8. I cannot get the link to link… Grrr…

Fallon on March 25, 2013 at 8:47 AM

All that means is the socialists need to find some other less overt way to confiscate the wealth and assets they have their eyes on. For the good of the people, of course.

farsighted on March 25, 2013 at 9:12 AM

I’m sure this has already been said but can’t France just have Biden stay over for a couple more days to ease the crunch? Do we not have an embassy in Paris?

Cindy Munford on March 25, 2013 at 1:22 PM

I’m sure this has already been said but can’t France just have Biden stay over for a couple more days to ease the crunch? Do we not have an embassy in Paris?

Cindy Munford on March 25, 2013 at 1:22 PM

Mais oui, but Biden has a thing for Italian women (didn’t you know that :), hence his ‘Roman holiday’. I suspect Paris will live and shrug off his snub though :)…de plus, Hollande will find more imaginative ways to solve the deficit problem (a variation on the the Cyprus ‘model’ comes to mind :)…

jimver on March 25, 2013 at 2:15 PM

Well, yeah. Now that they know they can rob banks with impunity.

enginemike on March 25, 2013 at 5:26 PM