French court rejects 75 percent millionaires’ tax

Emile Picy and Catherine Bremer
Reuters
12/29/2012

France’s Constitutional Council on Saturday rejected a 75 percent upper income tax rate to be introduced in 2013 in a setback to Socialist President Francois Hollande’s push to make the rich contribute more to cutting the public deficit.

The Council ruled that the planned 75 percent tax on annual income above 1 million euros ($1.32 million) – a flagship measure of Hollande’s election campaign – was unfair in the way it would be applied to different households.

Prime Minister Jean-Marc Ayrault said the government would redraft the upper tax rate proposal to answer the Council’s concerns and resubmit it in a new budget law, meaning Saturday’s decision could only amount to a temporary political blow.

While the tax plan was largely symbolic and would only have affected a few thousand people, it has infuriated high earners in France, prompting some such as actor Gerard Depardieu to flee abroad. The message it sent also shocked entrepreneurs and foreign investors, who accuse Hollande of being anti-business…

The article continues at Reuters.

 

CAJ note: So a tax burden that amounts to daylight robbery is all right with Reuters because it “would only have affected a few thousand people”? Are the wealthy actually using that much more of the state’s resources than the rest of us?
Update: via Instapundit:

GREG MANKIW: Wishful Thinking And Middle-Class Taxes. “Ultimately, unless we scale back entitlement programs far more than anyone in Washington is now seriously considering, we will have no choice but to increase taxes on a vast majority of Americans. This could involve higher tax rates or an elimination of popular deductions. Or it could mean an entirely new tax, such as a value-added tax or a carbon tax.” I’m willing to scale back entitlement programs that much. . . .

 

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