Thread: French election: Hollande wants 75% tax on top earners

BBC News - French election: Hollande wants 75% tax on top earners

François Hollande, the Socialist Party and Left Radical Party candidate in the 2012 French presidential election, who is likely to become France's next president, has said top earners should pay 75% of their income in tax.
This is what he said:

Above 1m euros [£847,000; $1.3m], the tax rate should be 75% because it's not possible to have that level of income.

Next to the idea that this is just theft, it is also a horrible idea. Lots of rich French are living in foreign countries to avoid ridiculous income taxes, guess what happens when the tax goes up even higher?
The Socialist Party in The Netherlands, which is now the biggest party in the polls, wants to drastically increase the income tax in The Netherlands as well. It is currently 52% for incomes higher than €56,491/year. He wants the 52% to become 55% and 65% for incomes above €150,000/year.
What is happening to Europe? Communism is slowly taking over Europe and people don't even notice it. Politicians are introducing new taxes and excises one by one so people don't notice, even though health care is great and things like welfares are given out quite easily. The gas prices here in Western Europe is 2.5x as much as in the USA for lots of countries (including France, The Netherlands, Belgium, Germany and the United Kingdom), and the entire difference goes to the government. People who don't care about money or people who are too lazy to get a job make richer people pay everything for them and lots of politicians don't see it or even participate. Communism is coming for Europe.

Wasn't the income tax above 70% in the US too, until Reagan came?

Not that I necessarily agree with such high tax rates, but in all fairness, the USA before Reagan were not "socialist", let alone "communist" and did fairly well.

Originally Posted by Tythor Zeth

BBC News - French election: Hollande wants 75% tax on top earners

François Hollande, the Socialist Party and Left Radical Party candidate in the 2012 French presidential election, who is likely to become France's next president, has said top earners should pay 75% of their income in tax.
This is what he said:

Next to the idea that this is just theft, it is also a horrible idea. Lots of rich French are living in foreign countries to avoid ridiculous income taxes, guess what happens when the tax goes up even higher?
The Socialist Party in The Netherlands, which is now the biggest party in the polls, wants to drastically increase the income tax in The Netherlands as well. It is currently 52% for incomes higher than €56,491/year. He wants the 52% to become 55% and 65% for incomes above €150,000/year.
What is happening to Europe? Communism is slowly taking over Europe and people don't even notice it. Politicians are introducing new taxes and excises one by one so people don't notice, even though health care is great and things like welfares are given out quite easily. The gas prices here in Western Europe is 2.5x as much as in the USA for lots of countries (including France, The Netherlands, Belgium, Germany and the United Kingdom), and the entire difference goes to the government. People who don't care about money or people who are too lazy to get a job make richer people pay everything for them and lots of politicians don't see it or even participate. Communism is coming for Europe.

We should welcome those people and their businesses to the United States.

I would love to have the best and the brightest minds from Europe over here.

Originally Posted by German guy

Wasn't the income tax above 70% in the US too, until Reagan came?

Not that I necessarily agree with such high tax rates, but in all fairness, the USA before Reagan were not "socialist", let alone "communist" and did fairly well.

Historical Top Tax Rate

Originally Posted by German guy

Wasn't the income tax above 70% in the US too, until Reagan came?

Not that I necessarily agree with such high tax rates, but in all fairness, the USA before Reagan were not "socialist", let alone "communist" and did fairly well.

Yes, but back then it was much more difficult to avoid high taxes. If France dramatically increased taxes, then the rich person had to move, transfer his money or take it out, apply for visa in the other country. Today, the person can do nearly everything on the computer. Also, rich people today are much more international, and will not have to start fresh.

I hope France does it, because it will be a massive failure. Then maybe we can stop the hysteria of taxing the rich.

Originally Posted by Camlon

Yes, but back then it was much more difficult to avoid high taxes. If France dramatically increased taxes, then the rich person had to move, transfer his money or take it out, apply for visa in the other country. Today, the person can do nearly everything on the computer. Also, rich people today are much more international, and will not have to start fresh.

I hope France does it, because it will be a massive failure. Then maybe we can stop the hysteria of taxing the rich.

I don't think taxing high incomes in general much more is a good idea. But I believe the idea of a capital transfer tax is not a bad idea. The financial sector has its share of blame for the economic mess we're in now, but they still contribute relatively few for solving it.

Even the conservative Christian Democrats in Germany support such a tax now. I guess when even they don't think it's "socialism", it really isn't.

Originally Posted by German guy

I don't think taxing high incomes in general much more is a good idea. But I believe the idea of a capital transfer tax is not a bad idea. The financial sector has its share of blame for the economic mess we're in now, but they still contribute relatively few for solving it.

Even the conservative Christian Democrats in Germany support such a tax now. I guess when even they don't think it's "socialism", it really isn't.

While the financial sector definitely has its share of blame for the economic crisis, they are in fact the ones paying a huge amount of income tax. They pay hundreds of thousands of Euros each year while others only pay a fraction.

Originally Posted by German guy

Wasn't the income tax above 70% in the US too, until Reagan came?

Not that I necessarily agree with such high tax rates, but in all fairness, the USA before Reagan were not "socialist", let alone "communist" and did fairly well.

"fairly well" is a subjective term, I guess.

When Reagan became President the inflation rate in the U.S. was 13.91%.

Originally Posted by Mycroft

"fairly well" is a subjective term, I guess.

When Reagan became President the inflation rate in the U.S. was 13.91%.

Was inflation that high from the late 50s to the early 70s as well, when the tax rate was extremely high?

Originally Posted by German guy

Wasn't the income tax above 70% in the US too, until Reagan came?

Not that I necessarily agree with such high tax rates, but in all fairness, the USA before Reagan were not "socialist", let alone "communist" and did fairly well.

Here is what I notice when I look at that chart.

1915 - 7%
1916 - 15%
1917 - 67% (WORLD WAR 1. Imagine having your taxes go from 15% one year, to 67% the next!!)

1921 - 73%
1922- 56%
1925 - 25% (So after the war, they go back down.)


1931 - 25%
1932 - 63%

1944 - 94% (Then they go back up for WW2)

Taxes stay in the 90's for a decade, then 80's, then 70's.... rebuilding Europe was expensive!

Finally under Reagan, we go all the way down to 28%...go up a little under Clinton... and settle at 35% under Bush/Obama.

So really, the USA has only had those very high taxes in wartime.

It seems to me that it would be dangerous for France to raise taxes that much during peacetime. What if they need to go to war, where will they draw the money from?

USA has only used those high taxes like a piggy bank that you draw from when you really need it, like in wartime. France wants to take everything out of that piggy bank now, but it's unwise... because when disaster comes they won't have any reserves saved away.