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France Considers Alternatives To 75% Tax Rate

From the UK’s Financial Times:

Paris seeks alternative to 75% tax

By Scheherazade Daneshkhu [sic] in Paris | March 1, 2013

France’s Socialist government is considering replacing its stricken 75 per cent top income tax rate on earnings above €1m [$1,298,800], with a 65-66 per cent rate on households earning more than €2m [$2,599,600].

The proposed new rate is working its way through the National Assembly as part of budget measures aimed at redressing France’s growing public deficit.

But it has come under fire from Christian Eckert, the Socialist head of the assembly’s budget committee, who said it did not fulfil [sic] President François Hollande’s emblematic manifesto promise.

To destroy the French economy?

In an interview with Le Monde newspaper published on Friday, Mr Eckert said: “It seems to me that we are in danger of losing two symbols: that of incomes above €1m and that of the 75 per cent rate, which will be dropped to 65-66 per cent.” …

So, just like in our country, it’s all about optics. And nothing to do with economics.

The tax measure, though popular during Mr Hollande’s election campaign last year, has become totemic for business leaders and others protesting loudly that such policies are driving wealth creators out of the country.

What a crazy claim.

Jérôme Cahuzac, budget minister, has suggested the government could apply the measure – which is not expected to raise much more than €200m [$25,996,000] a year – to households but raise the threshold to €2m…

Again, this draconian tax would have only raised $25 million dollars. So it has nothing to do with the deficit. But everything to do with punishing the so-called rich.

To help get round objections from the left of the party, Mr Hollande may decide to lengthen the term of the new tax for the rest of his five-year mandate and not just two years as proposed for the 75 per cent rate…

How wonderful of him.

The lower rate may be easier to push through, since public opinion seems to be waning for the 75 per cent rate, because of fears that it might be counterproductive.

A survey by Ifop pollsters last September showed that 60 per cent of those surveyed approved of the 75 per cent rate. But that dropped to 53 per cent last month, as 47 per cent said they wanted the government to drop the idea because “too high a rate encourages the wealthiest and entrepreneurs to leave our country.”

So even the French are more sensible than Obama voters.

Meanwhile, however, we also have this from the Associated Press:

French official: No more austerity this year

March 3, 2013

PARIS (AP) — France’s finance minister says his government won’t enact any more austerity measures this year, even though it has acknowledged it won’t meet its deficit goal because of slow growth.

Needless to say, they have not enacted any real austerity measures. That is any real spending cuts. But they have increased taxes.

The French government had promised to reduce its deficit to 3 percent of gross domestic product this year to bring it into line with European Union rules and help right the economy. But now France says that will be impossible and has asked the European Union for an extension.

Quelle surprise!

Still, Pierre Moscovici [sic] says the government would not heap more tax hikes or spending cuts on the country this year. He said such measures would be counterproductive since they can slow growth even further.

He said on French television Sunday: "We refuse to add austerity to the recession."

He sounds just like Obama.

This article was posted by Steve Gilbert on Monday, March 4th, 2013. Comments are currently closed.

One Response to “France Considers Alternatives To 75% Tax Rate”

  1. Fleece ‘em Till They’re Naked™
    Then sell the corpse.

    Socialist mantra. I heard it at the White House




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