ONTD Political

French 75% income tax struck down by constitutional council

10:53 pm - 01/01/2013
France's constitutional council has struck down a top income tax rate of 75% introduced by Socialist President Francois Hollande. Raising taxes for those earning more than 1m euros (£817,400) has been a flagship policy for Mr Hollande. The policy angered France's business community and prompted some wealthy citizens to say they would emigrate.

Mr Hollande's government said it would rework the tax, due to take effect in 2013, to meet the council's complaints. In its ruling on Saturday, the Constitutional Council said the new tax rate "failed to recognise equality before public burdens" because, unlike other forms of income tax, it was to be applied to individuals rather than households. For example, that meant a household in which one person earned more than 1m euros would pay the tax, but a household in which two people earned 900,000 euros each would not have to pay. The council also rejected new methods for calculating the tax.

But Prime Minister Jean-Marc Ayrault said the government would press ahead with the new tax rate. "The government will propose a new system that conforms with the principles laid down by the decision of the Constitutional Council," he said. The new rate was seen as largely symbolic since it would have only applied to some 1,500 people for a temporary period of two years. But along with other tax rises, it has still been the subject of fierce debate in France.

French actor Gerard Depardieu recently announced he was moving to Belgium to avoid taxes, sparking a furious reaction from some on the left. There was also speculation that people employed in high-income jobs like banking and finance would move elsewhere, including to London.

Mr Hollande campaigned against the austerity policies used in many European countries affected by economic crisis, favouring higher taxes rather than spending cuts to bring down the deficit. The 75% rate for high earners was included in the government's 2013 budget, approved by parliament in September.

Source: BBC
liliaeth 1st-Jan-2013 09:18 pm (UTC)
You know, I'm all for higher income taxes for the wealthy and all that, but 75% is a bit high, even with my socialist leanings.
darth_eldritch 1st-Jan-2013 09:42 pm (UTC)
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
cindyanne1 1st-Jan-2013 09:42 pm (UTC)
75% is just ridiculous. What would be the point in earning so much that you'd be taxed at that rate? I don't know about you, but I'd be downsizing and FAST.
mingemonster 2nd-Jan-2013 08:23 am (UTC)
The point is that for every euro you make above the tax rate limit you get 25 cents.
mary_pickforded 1st-Jan-2013 09:44 pm (UTC)
Good. That's way too high. At that point, I'd be moving my money offshore.
thevelvetsun 1st-Jan-2013 10:07 pm (UTC)
High taxes on the rich totally slows growth.

Which is why in the 1950s, when the USA's top tax bracket was taxed at 92%, there was no economic growth.
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
cellared 1st-Jan-2013 11:30 pm (UTC)
so many tears for rich people in this post

it's not even a tax on wealth, just income

_p you disappoint me

thevelvetsun 1st-Jan-2013 11:31 pm (UTC)
Seriously. I feel like I'm in a completely different _p than usual. Have I been body-swapped?
(no subject) - Anonymous - Expand
(no subject) - Anonymous - Expand
nesmith 2nd-Jan-2013 02:07 am (UTC)
I wonder if Britain still has its super tax bracket of 95%. Let these rich whiny assholes move there.
mephisto5 3rd-Jan-2013 05:05 pm (UTC)
No. The top rate of income tax since 1997 (the earliest date I know of, off the top of my hard) was 40% until all but the last few weeks of the Labour government in May 2010, when it was put up to 50% (mostly as an elephant trap for the next government which was pretty obviously going to be Tory). The coalition then lowered the top rate to 45%, with the agreement that this would be balanced by levying a new 'mansion tax' - i.e. more tax on expensive properties.

(Edited to correct date)

Edited at 2013-01-03 05:06 pm (UTC)
redstar826 2nd-Jan-2013 03:04 am (UTC)
lol oh _p, some days I really don't know what you are doing

also, according to the first site google gave me £817,400=$1,317,320 US dollars. I'm sure the poor dears will survive
maynardsong 2nd-Jan-2013 04:11 am (UTC)
Oh my effing GOD, not five comments in and already we've got people who have not a goddam clue what the fuck marginal tax rates are. Marginal tax rates, how do they work?
mollywobbles867 2nd-Jan-2013 05:26 am (UTC)
lol This post. Marginal taxes that are really high like that for the rich sounds like a great idea to me.
mingemonster 2nd-Jan-2013 08:29 am (UTC)
Sad that it got struck down. Taxes like this and more are exactly what most European countries need right now
heresie_irisee 2nd-Jan-2013 02:08 pm (UTC)
lol. It was never going to pass. Good old constitutional council! (dear god i hate them. we NEED a new nomination method for the members if we're going to keep up with the current trend of actually making them an active body in the legislative & judicial process. as is, they're a joke, nominated as political favours)

I don't think it would have worked all that well, though, just led to an exode of the rich, which is the opposite of what we need rn. Maybe something not quite as dire as 75% coupled with a stronger exit tax? something like that.
rebness 2nd-Jan-2013 11:00 pm (UTC)
Can I also point out that in Britain you have stupid fucking council tax which takes NO account of how much you are earning? You can be living next to a multi-millionaire and be in a low-paying job, but still have to fork out the exact same amount, around £100-£200 a month in this extra tax after you've been taxed on your earnings.

Can we weep for that instead of French multimillionaires? This is where we should be crying for people, not the stinking rich!

Edited at 2013-01-02 11:01 pm (UTC)
This page was loaded Apr 21st 2018, 12:11 am GMT.