Monday, December 30, 2013

Hollande's 'Tax Millionaires 75%' Gets Court Approval

France is about to sock it to the wealthy for several years: retroactively for 2013 and 2014. If you make over 1 million euros ($1.4 million) you're going to be hit with a hefty 75% tax. Actually, the companies that pay you that amount will be liable for a 50% duty on those wages in addition to some other taxes and "social charges" for a whopping total of 75%.  At least that's what claims.

The constitutional court of France approved Socialist President Francoise Hollande's proposal.

“The companies that pay out remuneration above 1 million euros will, as expected, be called upon for an effort of solidarity on remuneration paid in 2013 and 2014,” the Economy Ministry said in an e-mailed statement.
Hollande, who once said he “didn’t like” the rich, announced the 75 percent tax in February 2012 as part of his presidential campaign to appeal to his Socialist base. It has become a symbol of his government’s record-high taxation rate. [snip] The total amount is limited to 5 percent of a company’s revenue.

Hollande tried last year but failed because individuals rather than households were to be taxed.

It appears the current incarnation (taxing companies) went to the courts because it was opposed by a bunch of MPs and senators.

I wonder if there will be a mass exodus of the wealthy from France.

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