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."
Create an account with the same email registered to your subscription to unlock access.
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
-
What RFK Jr.'s running mate pick says about his candidacy
Talking Points Robert F. Kennedy Jr.'s' running mate brings money and pro-abortion-rights cred to his longshot presidential bid
By Harold Maass, The Week US Published
-
Why are dollar stores a microcosm for America's shrinkflation problem?
Today's Big Question Recent reports have tapped dollar stores as the top offenders of shrinkflation — even beyond grocery stores
By Justin Klawans, The Week US Published
-
'Islamic State attacks from Afghanistan into Iran and now Russia should be wake-up calls'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Puffed rice and yoga: inside the collapsed tunnel where Indian workers await rescue
Speed Read Workers trapped in collapsed tunnel are suffering from dysentery and anxiety over their rescue
By Sorcha Bradley, The Week UK Published
-
More than 2,000 dead following massive earthquake in Morocco
Speed Read
By Justin Klawans Published
-
Mexico's next president will almost certainly be its 1st female president
Speed Read
By Peter Weber Published
-
North Korea's Kim to visit Putin in eastern Russia to discuss arms sales for Ukraine war, U.S. says
Speed Read
By Peter Weber Published
-
Gabon's military leader sworn in following coup in latest African uprising
Speed Read
By Justin Klawans 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