Thursday 1 January 2015

M.Hollande and the Adventure of the Laffer Curve

Hollande heureux
Chapitre 1

France's 75% super-tax could be revived in Hollande's new year message 

Fran├žois Hollande is expected to use his televised new year message to vow that his flagship 75% super-tax on the mega-rich will go ahead despite being rejected by France's highest constitutional court.
Angelique Chrisafis in Paris, 31 December 2012

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Hollande plus sage
Chapitre 2

France forced to drop 75% supertax after meagre returns

Fran├žois Hollande’s unpopular tax changes that imposed a 75% rate on earnings above €1m  will quietly disappear into the history books from Thursday. The sums obtained from the supertax were meagre, standing at €260m in 2013 and €160m in 2014.
Anne Penketh in Paris The Guardian, 31 December 2014

What a difference a couple of years of reality makes, eh?



dearieme said...

``that second photo: he certainly looks as if he's got a twig of sage up his bum.

BE said...

The various issues are probably linked. The tax was only ever a two-year deal, so there was from the outset an incentive to delay pay until after the expiry of the tax.

rwendland said...

Worth remembering that here in Blighty parents with 3 kids are on a 73.8% marginal tax rate from 50k to 60k of salary, due to boy George's Child Benefit clawback system. 40% tax + 2% NI + 31.8% Child Benefit recovery (£3179.80 Child Benefit [(20.50 + (3*13.55)) * 52] recovered over the £10k band).

Also between 100k and 120k marginal tax rate is 63% I think, due to the £10,000 Personal Allowance clawback to zero that takes places now between 100k and 120k of income.