France Rejects 75% Tax on Millionaires (Socialism fails again)
Once again, the rich like their money. Once again, Socialism doesn’t work because growing an economy is the way out of a deficit rather than taxing your way out. So Hollande’s premise during his campaign, like in the US is a facade.
As Frank Zappa said: Communism doesn’t work because people like to own stuff.
Margaret Thatcher noted that socialism doesn’t work because sooner or later you run out of other people’s money.
France’s Constitutional Council on Saturday rejected a 75 percent upper income tax rate to be introduced in 2013 in a setback to Socialist President Francois Hollande’s push to make the rich contribute more to cutting the public deficit.
The Council ruled that the planned 75 percent tax on annual income above 1 million euros ($1.32 million) – a flagship measure of Hollande’s election campaign – was unfair in the way it would be applied to different households.
Prime Minister Jean-Marc Ayrault said the government would redraft the upper tax rate proposal to answer the Council’s concerns and resubmit it in a new budget law, meaning Saturday’s decision could only amount to a temporary political blow.
While the tax plan was largely symbolic and would only have affected a few thousand people, it has infuriated high earners in France, prompting some such as actor Gerard Depardieu to flee abroad. The message it sent also shocked entrepreneurs and foreign investors, who accuse Hollande of being anti-business.