France Scraps 75% Tax Rate
Discussion
Guardian said:
France's constitutional council has dealt a blow to beleaguered Socialist president François Hollande by rejecting the new 75% rate of income tax due to come into effect on Tuesday.
It declared the measure, the backbone of the French leader's successful presidential election campaign earlier this year, to be unfair and therefore unconstitutional. Immediately after the surprise legal ruling on Saturday, the French government pledged to redraft and resubmit the proposal.
LinkIt declared the measure, the backbone of the French leader's successful presidential election campaign earlier this year, to be unfair and therefore unconstitutional. Immediately after the surprise legal ruling on Saturday, the French government pledged to redraft and resubmit the proposal.
Common sense rejection of a measure that can only have substantially reduced the overall tax take. It would have been fun to watch the consequences though!
It's not been scrapped. It will be re-drafted.
"The politically independent constitutional council, made up of nine judges and three former presidents known as les sages (the wise), was asked to rule on the tax by the centre-right opposition UMP party. It did not declare the tax too high, but said its application was unconstitutional because it "failed to recognise equality before public burdens". Unlike regular income tax, which is levied on households, the 75% rate would have been applied to individuals. This meant an individual earning over €1m a year would have been subject to the tax, but a couple each earning €900,000 would not. The council ruled this was unconstitutional as it could lead to two households with identical incomes being taxed differently.
Ayrault's office said in a statement on Saturday that it would draw up a "new proposal … taking into account the principles raised by the constitutional council's decision" to be part of the next budget. No details were given on when or how this would be done. Finance minister Pierre Moscovici told BFM television: "Our deficit-cutting path will not be affected."
http://www.guardian.co.uk/world/2012/dec/29/france...
"The politically independent constitutional council, made up of nine judges and three former presidents known as les sages (the wise), was asked to rule on the tax by the centre-right opposition UMP party. It did not declare the tax too high, but said its application was unconstitutional because it "failed to recognise equality before public burdens". Unlike regular income tax, which is levied on households, the 75% rate would have been applied to individuals. This meant an individual earning over €1m a year would have been subject to the tax, but a couple each earning €900,000 would not. The council ruled this was unconstitutional as it could lead to two households with identical incomes being taxed differently.
Ayrault's office said in a statement on Saturday that it would draw up a "new proposal … taking into account the principles raised by the constitutional council's decision" to be part of the next budget. No details were given on when or how this would be done. Finance minister Pierre Moscovici told BFM television: "Our deficit-cutting path will not be affected."
http://www.guardian.co.uk/world/2012/dec/29/france...
Caulkhead said:
When Margaret Thatcher came to power in 1979 the top rate of income tax was 83%. . . . . . .
Plus an additional 15% on "unearned income" such as interest received or company dividends. Ultimate top rate 98%. Nice.This type of tax strategy works hardest against sporting and other stars who may have a couple of good years and many low-paid years. No wonder they all left the country!
France will introduce its 70% rate. They have many more tax allowances than UK which means the actual top rates of 50% UK and 70% France aren't really comparable at the headline level. Remember that higher paid employees in UK are paying an additional 2% National insurance as well.
Terminator X said:
75% tax?! If you tried to tax me at that level I'd do all that I could to get my declared income below the threshold ... daft measure surely?
TX.
No so different to the marginal 66% or so in the UK from earning over £100k and losing the personal allowance! Im sure plenty try and avoid that as well!TX.
Ozzie Osmond said:
Caulkhead said:
When Margaret Thatcher came to power in 1979 the top rate of income tax was 83%. . . . . . .
Plus an additional 15% on "unearned income" such as interest received or company dividends. Ultimate top rate 98%. Nice.This type of tax strategy works hardest against sporting and other stars who may have a couple of good years and many low-paid years. No wonder they all left the country!
France will introduce its 70% rate. They have many more tax allowances than UK which means the actual top rates of 50% UK and 70% France aren't really comparable at the headline level. Remember that higher paid employees in UK are paying an additional 2% National insurance as well.
I can't see how, even the re worked / drafted proposal, won't dramatically effect how France performs as a country. Increase the tax on the poor and by and large they have to accept it; do the same to the rich and they have the means to f
k off. Many will.......Socialists never learn.
Aristo!
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