Taxes on some wealthy French top 100 pct of income

[Carling]

http://www.reuters.com/article/2013/05/18/us-france-tax-idUSBRE94H0AX20130518

(Reuters) - 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.

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.

Les Echos reported that nearly 12,000 households paid taxes last year worth more than 75 percent of their 2011 revenues due to the exceptional levy. ($1 = 0.7798 euros)

(Reporting by Leigh Thomas, Editing by Mark Trevelyan)

[mountaineer]

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.

What, only 2/3 of a person's income? Sure, why not.   

[Oceander]

What, only 2/3 of a person's income? Sure, why not.   

In the 40s to the early 60s the top marginal rate was around 90%; even in the 60s and 70s the top marginal rate was 70%.  Even the poor got soaked; the lowest marginal rate in the 60s was 14%.

That's what we're headed back to if we continue to elect the fascists, I mean democrats.

[mountaineer]

In the 40s to the early 60s the top marginal rate was around 90%; even in the 60s and 70s the top marginal rate was 70%.

I know. It's hard to imagine. I don't suppose my father ever made enough to worry about the very high tax rates of the 50s and 60s, but still, there's just something so repugnant of paying more than half your income to the government.

[Oceander]

I know. It's hard to imagine. I don't suppose my father ever made enough to worry about the very high tax rates of the 50s and 60s, but still, there's just something so repugnant of paying more than half your income to the government.

Yes there is.  Don't worry, if we keep the fascists, I mean democrats, in power much longer we'll all get first-hand knowledge of what that feels like.

[happyg]

In some ways, it's similar here. I've seen many people lose their homes, farms, and assets because of taxes and penalties. And then, they still owe money.

[Oceander]

In some ways, it's similar here. I've seen many people lose their homes, farms, and assets because of taxes and penalties. And then, they still owe money.

When the IRS gets its hooks into you - and especially when you get a Revenue Officer or Agent who subjectively believes you're cheating - you will almost always end up having to declare bankruptcy unless you have a large income relative to the taxes, penalties and interest they're asserting against you.  And even then you may not be able to discharge the taxes.