France sees the results of class warfare
From Reuters, the logical conclusion of class warfare is seen in France:
More than 8,000 French households’ tax bills topped 100 percent of their income last year, the business newspaper Les Echos reported on Saturday, citing Finance Ministry data.
The newspaper said that the exceptionally high level of taxation was due to a one-off levy last year on 2011 incomes for households with assets of more than 1.3 million euros ($1.67 million).
President Francois Hollande’s Socialist government imposed the tax surcharge last year, shortly after taking office, to offset the impact of a rebate scheme created by its conservative predecessor to cap an individual’s overall taxation at 50 percent of income.
Notice the slight media bias in the third paragraph above – it was “a rebate scheme” to prevent individual taxation at 50% of income.
Fortunately, not everyone is as class warfare-happy as President Hollande:
The government has been forced to redraft a proposed bill to levy a temporary 75 percent tax on earnings over 1 million euros, which had been one of Hollande’s campaign pledges.
The Constitutional Council has judged such a high rate of taxation to be unfair, leaving the government to rehash it to hit companies rather than individuals.
Since then, a top administrative court has determined that a marginal tax rate higher than 66.66 percent on a single household risked being considered as confiscatory by the council.
I’m not sure what justification is used to say two-thirds of one’s income should be confiscated, but does it really matter? France has a gigantic spending problem, yet its President is focusing on taxing upper-income earners. Even the Constitutional Council has claimed a full two-thirds of income can belong first to the government, not the earner.
Shameful. And yet, we are seeing a similar path here in America. Hopefully America will see France’s example and choose another path.