The new rule from the socialist government of France is: we’re not going to take most of the money you earn, we’re going to take all of it and your savings, too. The business newspaper Les Echos said more than 8,000 households in France paid more than 100% of their income last year to the government in taxes. This resulted from last year’s tax on 2011 incomes where people had assets of more than 1.3 million euros.
The government of Socialist President Francois Hollande’s Socialist government took that tax because it was trying to make up for the previous government’s capping of individual taxes at 50 percent of income.
The government planned to institute temporary 75 percent tax on earnings more than 1 million euros, but had to rescind that when the Constitutional Council said that was unfair. A top administrative court insisted that a marginal tax rate higher than 66.66 percent was too confiscatory for a single household.
So 66.66 percent is okay in France? At that rate, it won’t be long before they’re looking like Greece.