France drops its super tax on millionaires
Designed to force millionaires to pay tax rates of up to 75 percent: “Cuba without the sun,” as described by a critic from the banking industry. Socialist President Francois Hollande’s super tax was rejected by a court, rewritten and ultimately netted just a sliver of its projected proceeds. It ends on Wednesday and will not be renewed.
The tax of 75 percent on income earned above one million euros ($1.22 million) was promoted in 2012 by the newly-elected Hollande as a symbol of a fairer policy for the middle class, a financial contribution of the wealthiest at a time of economic crisis.
The government though couldn’t fully implement the law. It was overturned by France’s highest court and rewritten as a 50 percent tax paid by employers.
Faced with a stalling economy and rising unemployment, the government reversed course in 2014 with a plan to cut payroll taxes by up to 40 billion euros ($49 billion) by 2017, hoping to boost hiring and attract more investments.
All the while, Prime Minister Manuel Valls kept repeating his new credo: “My government is pro-business”.
Although the super tax affected only a small number of taxpayers, it triggered huge protests in business, sporting and artistic communities. French actor Gerard Depardieu decried it vociferously and took Russian citizenship. Soccer clubs threatened to boycott matches for fear that 114 of their players or coaches would be taxed. The final version of the tax allowed them to minimize the burden.
At the time of its proposal, British Prime minister David Cameron ironically proposed to “roll out the red carpet” to French companies willing to avoid the tax.
Proceeds from the tax are estimated to total 420 million euros ($512 million) for about 1,000 employees in 470 companies, according to the government. By comparison, France’s budget deficit has soared well over 80 billion euros ($97 billion).
And that’s what Odummer wants here in the US, tax the rich yet he hides whatever money he has, as does his cronies.