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French Diss: Socialist Prez Unveils New Budget that Includes 75% Tax Rate on Wealthy, 45% Rate on Some Others

Sep. 28, 2012 9:00am Jonathon M. Seidl

New French Budget Taxes Rich at 75 percent

A photo taken on September 27, 2012 shows a balloon with pictures of France's President Francois Hollande during a demonstration of employees of French pharmaceutical group Sanofi hold at the group's plant in Toulouse, southern France. Credit: AFP/Getty Images

PARIS (AP) — The French government presented a budget Friday that was heavy on taxes – including a controversial 75 percent income rate on high earners – but which critics said lacked fundamental reforms that could jumpstart economic growth.

President Francois Hollande’s cabinet defended the spending plan for next year, calling it a “fighting budget” that would win the “battle” against joblessness and help growth.

Like many European countries, France must tread a fine line between cutting the debts that dragged them into the current financial crisis and investing in the economy to spur growth.

The French economy, the second largest among the 17 countries that use the euro, has not grown for three straight quarters, the national statistics agency confirmed Friday. Unemployment has been on the rise for more than a year and stands at 10.2 percent.

Economists warn, however, that things could get much worse in France if it doesn’t get serious about slashing state spending and reforming stringent labor laws.

“This is a serious budget, it’s a leftist budget and it’s fighting budget,” Finance Minister Pierre Moscovici told French radio station Europe-1 Friday morning.

Because Hollande promised that he would slash the country’s deficit to 3 percent next year – a limit required by European rules – the government must find (EURO)30 billion in savings. One-third will come in spending cuts, with the rest in new or higher taxes on the wealthy and big companies, including a 75 percent tax on incomes over (EURO)1 million.

Among the other measures included are: a new income tax level at 45 percent for those making more than (EURO)150,000, an increase of capital gains taxes to bring them more in line with how salaries are taxed, and a cap on certain deductions for large companies on their income taxes.

The 75 percent tax will last for two years and has always been billed as a symbolic measure since it will bring in very little revenue. Several businessmen and politicians in the opposition have said that’s exactly what’s wrong with the 2013 budget: It sends the message that France doesn’t like the rich and isn’t open for business.

“France is sick from a model that isn’t viable,” said Guillaume Carou, CEO of Didaxis and president of the Club of Entrepreneurs, which represents 15,000 small businesses. “But (the government has) chosen to keep it, that’s what the 2013 budget reveals.”

Prime Minister Jean-Marc Ayrault rejected that characterization, however, insisting that the budget would win the battle against unemployment.

“It’s a budget that aims to inspire confidence and to break the debt spiral that keeps growing and growing,” he said after the budget was presented to the Cabinet.

The budget is built around an expectation of 0.8 percent growth for next year. If growth misses the projections, more cuts could be needed later.

Moscovici conceded that most economists predict the French economy will grow just 0.5 percent, but said that if the European debt crisis stabilizes, France would meet its targets.

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Comments (82)

HuskerDave
Posted on September 28, 2012 at 10:37am
One of the greatest things I’ve seen on YouTube is the video of actor and liberal apologist Will Smith (otherwise a smart guy) being asked about the 75% tax on French TV.

His jaw pretty much hit the floor.

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- Gold Coin & Economic News
  Posted on September 28, 2012 at 11:26am
  Way to go you dumb Frenchy Frenchmen, you just sold out your country. You will never raise the revenue you think from this stupid move because people with money will leave your country in droves now. In fact, with this idiotic move, you will probably lose money when those with wealth, the producers, decide they have had enough.
  
  And if the USA does not watch out and Obama gets elected again, we will go the same way as the idiotic French:
  https://www.youtube.com/watch?v=9FaDkTOxVXI
  
  Report this comment
Sirfoldallot
Posted on September 28, 2012 at 10:23am
@ the Jerk – What nut house let u out ? You make no sense

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- VerySeniorCitizen
  Posted on September 28, 2012 at 3:36pm
  Contrary to what Republicans would have you believe, super-high tax rates on rich people do not appear to hurt the economy or make people lazy: During the 1950s and early 1960s, the top bracket income tax rate was over 90%–and the economy, middle-class, and stock market boomed.
  (from Business Insider)
  
  Here is someone who knows something about business, capitalixm, the economy and investments. Meet Nick Hanauer (co-founder of AMAZON) http://www.youtube.com/watch?v=bBx2Y5HhplI
  
  Report this comment
- Expatjames
  Posted on September 28, 2012 at 4:58pm
  @ verysenior… you can’t possibly compare the work ethic of the 50s and 60s to now where half the population doesn’t even pay taxes. Apples and oranges old person. I have a very successuful business and I can tell you, if I had to pay taxes like 75% I would take it out of the country like thousands will and already have. As you have seen jobs continue to leave over seas where doing business is cheaper. Yes sir it’s ok to make a profit, yes I know that word profit is lilke holy water to a vampire. So when all the jobs left so did the taxes that those jobs used to pay. Get the idea? You’ll see just keep an eye on France over the next year or two and see what happens. No socialist country has ever in the history of mankind been successful. Can you name one since your very senior, you have obviously been around for a while. Any country name one.
  
  Report this comment
- VerySeniorCitizen
  Posted on September 28, 2012 at 7:03pm
  @EXPATJAMES
  The top ten countries listed on the index are: Norway, Australia, Iceland, Canada, Ireland, the Netherlands, Sweden, France, Switzerland and Japan. Niger ranks at the very bottom, just below Afghanistan. France — which was not part of the top 10 last year — returns to the upper echelons by moving up three places to number 8. The United States ranks 13th, down one spot from last year.
  
  Next question?
  
  Report this comment
- joeyps
  Posted on September 28, 2012 at 7:55pm
  What VERYSENIORCITIZEN fails to understand is during the time of 90% income tax rates no one paid anything close to it because of deductions and “LOOPHOLES” the majority of the wealthy paid very little in taxes.
  
  Report this comment
- VerySeniorCitizen
  Posted on September 28, 2012 at 10:28pm
  @JOEYPS
  
  Oh YES, Joey, I WAS THERE!!
  
  Corporations which had high tax rates USED tax deductions and discounts for their benefit.. Remember Henry Ford – who invented the ‘assembly line’? http://www.nytimes.com/2006/04/05/business/05leonhardt.html?_r=0
  
  See, Joey, Companies – back in the 1940s, 1950s and 1960s – USED discounted tax for R&D, to raise worker’s pay, buy and install new equipment to create more and better products, and sell those products to their own workers – and all workers from other companies which were doing the same thing. So EVERYONE held a winning hand. The workers (and their worker’s unions) benefited from higher pay and better working conditions (making for a happy and enthusiastic workforce), more and better products for the public at large to buy and, with the advent of the Interstate System the ability to ship products at reasonable costs – countrywide. Even the Corporate Owners/Investors made money because the corporation ‘bottom line’ was VERY healthy. And so the ‘middle class’ was born.
  
  ONLY when folks have money in their pockets can they spend it on products which create a DEMAND for manufacturers and service providers – thus increasing REVENUE to the government thru both direct taxes AND sales taxes from the end users.
  
  The current President has made an attempt to re-create that environment by discounting (taxes) for those corporations which provide R&D and buy new equipment for their businesses. Watch Nic
  
  Report this comment
tarpon
Posted on September 28, 2012 at 10:14am
Welol this deserves a big Haha…

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rockymtngal
Posted on September 28, 2012 at 10:10am
It doesn’t matter how much you raise the taxes on the rich, Obama & our gov’t will con’t to spend, spend and spend some more. Cut the duplicate/overlap spending. Stop doling out $ to projects like “shrimp on the treadmil: doung a study to see why pigs f a r t so much: why to Chinese prostitutes drink more, etc. Really? Do we really need to spend tax dollars on idiotic grants like that? Why is it that my tax dollars are being spent on “art” that blasphemes my Lord and Savior, while we MUST be sensative to Mohammad? Really? We’ll see if this gets posted. I’m thinking it won’t.

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- GodFearingMama
  Posted on September 28, 2012 at 11:00am
  They will not stop until we crash. They want complete control. Evil by all definition. Guns and religion will be the only way to bring America back.
  
  Report this comment
- VerySeniorCitizen
  Posted on September 28, 2012 at 3:37pm
  @GODFEARINGMAMA
  
  OR kill it completely!
  
  Report this comment
- TJSON
  Posted on September 28, 2012 at 6:00pm
  If you look at this graph:
  http://en.wikipedia.org/wiki/File:CBO_-_Revenues_and_Outlays_as_percent_GDP.png
  You’ll see that spending is at an all time high, and revenues are at an all time low. Wouldn’t you agree that in order to fix the problem we will need to do two things:
  REDUCE SPENDING
  and
  RAISE REVENUE.
  
  Report this comment
- michael48
  Posted on October 3, 2012 at 7:42pm
  tj…65 been watching this movie for a long time…taxes have always been immediate…spending cuts have NEVER arrived….@ very…been a frustrated socialist for a long time , haven’t you???was a kid in the 50s…JFK kick started and finally ended comrades FDRs extended depression…just my opin..the depression didn’t start to wind down until 53′…
  
  Report this comment
SREGN
Posted on September 28, 2012 at 10:07am
Next come the guillotines. Run like the wind, French 1%, run like the wind.

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ColoradoMaverick
Posted on September 28, 2012 at 10:02am
The French people will get exactly what they asked for. Americans need to pay closer attention to what is going on in the EU, because if Obama gets a second term in office, he will not let the French president out-do him.

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THEREARE4LIGHTS
Posted on September 28, 2012 at 9:58am
In the last 30yrs, France almost bankrupted itself for these “new” policies at least two other times. Only when they got off the back of citizens and scaled back government programs were they able to recover only to go back down the same road. Liberals will never learn. You can shine a turd all you want but all you will have is a shiny turd!

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Sirfoldallot
Posted on September 28, 2012 at 9:57am
Dictators are elected by the peope. People cry out for help ( after every 1 wants there greed ) & in steps a socialist or dictor. WTH, happen ? This is not what they voted 4. more free stuff was what they wanted.

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EqualJustice
Posted on September 28, 2012 at 9:55am
HAHAHA Can’t wait for all those LIBERAL athletes who thought socialism was such a great idea to get that 75% tax bill! They’re going to lose a LOT of that “negotiated” salary. 75% HAHAHA Why bother “negotitating” any longer? Imagine if Obama does that here? Biggest losers will be UNION EMPLOYEES, UNLESS they happen to get more “WAIVERS?” Think about the Hollywood actors and athletes here who SUPPORT Obama. Be careful what you wish for!

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- Jloyoyo
  Posted on September 28, 2012 at 10:20am
  I am sure they will get some sort of tax exempt for all the help in getting Barry reelected. Except ol’ Clint, he better get out of Dodge.
  
  Report this comment
term limits for congress
Posted on September 28, 2012 at 9:51am
At least in France they can call their socialists what they are – socialists. We would be better off if we did the same.

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floridareader
Posted on September 28, 2012 at 9:50am
Such budget could give positive results: all Muslims that invade France today will fly their rugs back to the desert.

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Dismayed Veteran
Posted on September 28, 2012 at 9:40am
Look out Belgium and Switzerland, here come the French.

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Skee
Posted on September 28, 2012 at 9:39am
I wonder if the U.S. media will cover the failure of Frances’s socialists failure
to turn their country around. Proving free markets and a free people is the only
solution.

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Chromo200
Posted on September 28, 2012 at 9:36am
I am waiting to hear from Buffetr, Gates, Kerry, Bloomberg and the rich Hollywood crowd about a 75% tax. I bet Obama will make a rule to shelter his and his cronies money.

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perry1980
Posted on September 28, 2012 at 9:34am
If Obama had his way that is exaclty what the “1%” would pay here in America.
Send Barry to France, he wuold fit it perfectly.

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Landon410
Posted on September 28, 2012 at 9:31am
all french pro sports teams are going to suffer because no player is going to want to sign to play in france
get a 5,000,000 contact and only get paid 1,250,000
or… sign with a team in a different country and acutally get paid…
I’d like to know what our hollywood crowd would think about a 75% income tax

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- NOTAMUSHROOM
  Posted on September 28, 2012 at 9:45am
  I hear that they’re all moving to Texas, or Namibia or some remote Carribean island like Tortuga.
  
  Remember, Marxism is for the rich. They keep theirs and just shuffle the deck chairs for everyone else.
  
  Report this comment
- TJSON
  Posted on September 28, 2012 at 1:17pm
  That’s not actually how the tax would work. A person would pay 45% taxes on anything between 150k and 1 million, and 75% on everything over 1 million. The athlete in your example would be taxed 45% of $850 (380k) and 75% of the remaining 4 million (3 million$).
  
  Their net earnings would be around 150,000+470,000+1,000,000 = 1.62 million dollars.
  
  Not that this changes your point, just hoping to clarify.
  
  Report this comment
Snowleopard {gallery of cat folks}
Posted on September 28, 2012 at 9:23am
This is what Obama wants for the United States – a socialist government on the way to full blown communism. Look unto the future of our land if he has a second term.

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- U.N.hater
  Posted on September 28, 2012 at 9:36am
  I sure hope they don’t let johny depp back in here hehehehe. Pay up you little biatch!
  
  Report this comment
marybethelizabeth
Posted on September 28, 2012 at 9:13am
We should do the same. In the long run it will be cheaper to pay off the debt now than continue to make the interest payments.

It’s the prudent, fiscally responsible thing to do.

The conservative, what’s in it for me, live for today, crowd will disagree. They can’t see the long term advantage. They’ll whine without an immediate reward.

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- midwesthippie
  Posted on September 28, 2012 at 9:24am
  …MARY…the rich have the ability to flee America and or hide their money…duh…
  
  Report this comment
- The_Jerk
  Posted on September 28, 2012 at 9:26am
  Here’s a better idea. Stop all welfare payments to the healthy. End Medicaid. Stop the earned income tax credit. Stop all subsidies, free food, free phones, free education to minorities… . Stop foreign aid.
  
  Off-load the takers and society will be better. That will end the debt.
  
  Report this comment
- progressiveslayer
  Posted on September 28, 2012 at 9:27am
  I’ll refer you to the laffer curve to answer the question on raising tax rates.The higher the rate of taxation the less they take in. I know it’s hard for simpleton progressives to understand this concept but it’s true.
  
  Another idiotic observation you point out that ‘conservatives live for the day’? I must to be blunt with you you’re stupid.
  
  Report this comment
- NOTAMUSHROOM
  Posted on September 28, 2012 at 9:28am
  Yes because confiscating the wealth of your citizens has always been a winning strategy.
  
  You Commies never will learn.
  
  Report this comment
- msconstrue
  Posted on September 28, 2012 at 9:29am
  conservative and live for the day hardly belong in the same sentence. the “conservatives”, ie, the savers, dont spend more than we make, take care of our selves are the ones that will be carrying the burden of the” live for the day crowd”.
  
  if our government raises our taxes to that level it will CRUSH the middle class……and there will be no one left to pay for your entitlements. then what do you think will happen? i’ve read your posts before, and am now convinced that you are even more foolish than you apprear.
  
  Report this comment
- Rosalyn
  Posted on September 28, 2012 at 9:29am
  Raising taxes on the rich will not do much at all, it won’t solve our countries economic woes. According to the Tax Foundation “[T]aking half of the yearly income from every person making between one and ten million dollars would only decrease the nation’s debt by 1%,”
  
  Report this comment
- marybethelizabeth
  Posted on September 28, 2012 at 9:31am
  You can do that too, Mr. The_Jerk, and that will have .001% the effect as a tax increase will have.
  
  Report this comment
- randy
  Posted on September 28, 2012 at 9:31am
  The conservative, what’s in it for me?
  I’d have to give you the biggest idiot on the Blaze award…..
  Conservatives work for what they have you moron!
  The Democrats are the party of what’s in it for me!
  I shake my head every time I read one of your posts thinking, can someone really be that stupid?
  
  Report this comment
- Landon410
  Posted on September 28, 2012 at 9:33am
  per james madison the constitution does not get congress power to use tax dollars on issues of benevolence
  and if you dont know james madison wrote the constitution
  so, why wouldn’t we end these tax funded benevolent programs, and tax the 47% that pay 0 tax, and we’d have no debt at all
  
  Report this comment
- progressiveslayer
  Posted on September 28, 2012 at 9:36am
  Oh simpleton Mary believes we’ll be able to ‘pay off the debt’. ROTFLMAO The psychotropics you’re using clearly aren’t effective,you need a new shrink or new meds,probably both.
  
  Report this comment
- Gonzo
  Posted on September 28, 2012 at 9:38am
  Don’t waste logic on an idiot Slayer. The Laffer curve is a vast right wing conspiracy in her feeble mind.
  
  Report this comment
- NOTAMUSHROOM
  Posted on September 28, 2012 at 9:40am
  .001%????
  
  I see like most Commies you can’t do math either.
  
  Yup let’s give ALL of our wealth to the same ignoramuses like MBE who spent everything and more. Nothing could go wrong with that plan.
  
  Report this comment
- U.N.hater
  Posted on September 28, 2012 at 9:40am
  The federal government collects an average of 2.2T a year. You think they need more? I think it’s time to clean house and the country.
  
  Report this comment
- marybethelizabeth
  Posted on September 28, 2012 at 9:49am
  Mr. Randy, Think about it again.
  
  The overwhelming majority of Democrats are working class.
  
  Most of the people who receive government assistance vote Republican. The elderly is a large percentage of that Republican voting block.
  Most of the people who do not pay taxes vote Republican, That’s how the tax code got the way it is.
  
  Report this comment
- cscregan
  Posted on September 28, 2012 at 9:51am
  The problem with your thinking is that you assume a premise. The premise, raise taxes collect more money. Your premise presupposes a static response to peoples financial situations. Meaning people will just pay the tax and not change the way they work and spend money. But peoples financial situations are dynamic. Meaning, they will adjust how they work and how they spend their money. If you would research just a little what happens when the Federal Government or for that matter the State Governments raise taxes, you would see that the majority of times the governments projected revenue increase never match projections. They are all ways lower then expected. And, if you are interested in researching a little further, you can go to the IRS web site and see according to their numbers the top 10% of wage earners make a little over 40% of all income but pay over 70% of all federal income taxes. Raising someone elses taxes may make you feel emotionally better, but it will not fix the financial problems this country faces.
  
  Report this comment
- FieryRedHead
  Posted on September 28, 2012 at 9:52am
  What WOULD be fiscally responsible is having a budget and sticking to it, not spending an extra trillion dollars each year trying to prop up a failing economy and out of control government. But you’re right, we conservatives are only thinking about the “right now” and not about the future of our country…unlike the liberal idea of “if it feels good, do it…without consequence” mentality. That has worked out SO well for us so far.
  
  Report this comment
- kunman
  Posted on September 28, 2012 at 9:53am
  When will these socialist ever learn? Businesses and business owners are in business to make a profit. They are not in business to give people a job or help the government for the greater good. It’s the incentive of making a profit that sparks innovation. They have tried 75% tax rate in the USA before. It didn’t work then and it won’t work now. People with money and businesses will naturally take them elsewhere. It’s is happening in France as I type. Against what Obama has been touting, it is liberal tax schemes like this that send jobs to China. Liberals need to check history.
  
  Report this comment
- marybethelizabeth
  Posted on September 28, 2012 at 9:53am
  Mr. Progressiveslayer: the Laffer Curve was sketched out on a napkin in a bar. Go read what Mr. Laffer said about his idea back in the 70s.
  
  It’s not prudent to base tax policies on a 40 year old drunken fantasy.
  
  Report this comment
- Lord_Frostwind
  Posted on September 28, 2012 at 9:57am
  Unfortunately, that works under the assumption that the money gathered will go to pay off the debt, I’ve seen enough politicians to doubt that money won’t end up “helping the people,” and their own reelection/pocketbook. Also, people are self serving, very few are going to happily go laying down on the economic grenades, especially for a society that blames them for all their problems. I think many of the rich are just content to watch the government implode and will make sure they escape being sucked into the void.
  
  Report this comment
- marybethelizabeth
  Posted on September 28, 2012 at 9:59am
  And yet, Mr. CScregan, it has been estimated that the $6 trillion in debt recently amassed would only have been $3 trillion if the tax rollback of 3% had been rescinded. It’s not a wild assumption, It’s not much of a gamble to think that tax revenues would rise if taxes are increased.
  
  The future is somewhat uncertain and numbers only lie sometimes.
  
  Report this comment
- Gonzo
  Posted on September 28, 2012 at 10:06am
  Told you Slayer.
  
  Report this comment
- marybethelizabeth
  Posted on September 28, 2012 at 10:18am
  Mr Gonzo, Arthur Laffer was a Stanford academic. Someone who you would normally dismiss out of hand.
  
  He’s not a member of any vast right wing conspiracy.
  
  YOU on the other hand……..
  
  Report this comment
- HuskerDave
  Posted on September 28, 2012 at 10:21am
  Mary… certainly you must realize – that we are spending so much – that even if we took 100% of the money that “the 1%” have, and sold all their possessions to fund the government; it still wouldn’t come close to paying off the debt. In fact, our debt is so great right now, that if we took 100% of ALL the income earned in the United States from ALL businesses and employees – ALL of it – we couldn’t pay off the debt.
  
  This nation does not have a revenue problem – we have a SPENDING problem!
  
  Report this comment
- Gonzo
  Posted on September 28, 2012 at 10:53am
  Well then MBE, you’re wrong on several fronts in just one posting today. Congratulations.
  
  Report this comment
- woodyee
  Posted on September 28, 2012 at 11:23am
  HERE you are Marybeth – I was looking for you over on the food thread! You done with my laundry ye? Sure are wasting a lot of time here, woman…
  
  Report this comment
Landon410
Posted on September 28, 2012 at 9:13am
75%? this is what Obama wants, and dont think otherwise,
I’d actually like to hear someone ask him about France’s new budget and don’t let him have someone else write him a speech to dance around it and never answer it.

someone needs to ask him and we need a real answer

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Wilma
Posted on September 28, 2012 at 9:13am
I have heard the wealthy in France are moving to Belgium.

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jimbo_from_suwanee
Posted on September 28, 2012 at 9:12am
It is like looking into a crystal ball and seeing our future. Part of it anyway.

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Gonzo
Posted on September 28, 2012 at 9:11am
Great model for Obama to follow in is second term. It will be interesting to see which economy stagnates and collapses the quickest.

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thibx
Posted on September 28, 2012 at 9:08am
they elected an idiot so did we.

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- Gonzo
  Posted on September 28, 2012 at 9:26am
  They elected a SOCIALIST, so did we.
  
  Report this comment
progressiveslayer
Posted on September 28, 2012 at 9:05am
France will collapse under the socialist and his draconian taxes that’s a given.They also have the problem of the Islamists taking over their country with the assistance of their candyass politicians.
Sound familiar?

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midwesthippie
Posted on September 28, 2012 at 9:03am
…tax rate of 75/45%…coming to a town near you…

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