France is killing its 75 percent 'super tax'
The tax is due to expire at the end of this month, and unsurprisingly, it will not be renewed. Reuters describes the French economy, which has an unemployment rate of over 10 percent, as "sickly," and the hope is that this and other moves will help jumpstart things.
The French tax burden became one of the highest in the world when, in 2012, President Francois Hollande imposed a 75 percent "super tax" on earnings over 1 million euros ($1.2 million).
It was not a particularly popular move. Actor Gerard Depardieu, who made headlines when he took up residency in Russia, was among the wealthy protesters who exiled themselves to more tax-friendly countries. Some fled abroad to Luxembourg, or the UK. Tax lawyer Jean-Philippe Delsol wrote a book on the experience, called Why I Am Going To Leave France. French soccer clubs threatened to strike.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
As Reuters puts it, the tax, which Hollande used during his campaign to attract liberal voters and unseat Nicolas Sarkozy, "has been a thorn in his side" ever since its passage. And despite producing an estimated 260 million euros in its first year and 160 million in its second, the tax's proceeds have done little to offset France's 84.7 billion euro budget deficit.
Jorg Stegemann, head of an executive search firm based in France and Germany, told Reuters that the tax "clearly damaged France's reputation and competitiveness."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Harriet Tubman made a general 161 years after raid
Speed Read She was the first woman to oversee an American military action during a time of war
By Peter Weber, The Week US Published
-
Chappell Roan is a new kind of boundary-setting celebrity
In the Spotlight She's calling out fans and the media for invasive behavior
By Anya Jaremko-Greenwold, The Week US Published
-
Saudi crown prince slams Israeli 'genocide' in Gaza
Speed Read Mohammed bin Salman has condemned Israel’s actions
By Peter Weber, The Week US Published
-
Nobody seems surprised Wagner's Prigozhin died under suspicious circumstances
Speed Read
By Peter Weber Published
-
Western mountain climbers allegedly left Pakistani porter to die on K2
Speed Read
By Justin Klawans Published
-
'Circular saw blades' divide controversial Rio Grande buoys installed by Texas governor
Speed Read
By Peter Weber Published
-
Los Angeles city workers stage 1-day walkout over labor conditions
Speed Read
By Justin Klawans Published
-
Mega Millions jackpot climbs to an estimated $1.55 billion
Speed Read
By Catherine Garcia Published
-
Bangladesh dealing with worst dengue fever outbreak on record
Speed Read
By Catherine Garcia Published
-
Glacial outburst flooding in Juneau destroys homes
Speed Read
By Catherine Garcia Published
-
Scotland seeking 'monster hunters' to search for fabled Loch Ness creature
Speed Read
By Justin Klawans Published