THE NEW FRENCH PRESIDENT HOPES TO IMPOSE A 75 PERCENT TAX ON FRANCE'S RICHEST CITIZENS

Sarah,

Francois Hollande, a socialist, has recently been elected president of France.  A European socialist equates to a very liberal Democrat in America.  Hollande is proposing a 75% tax on anyone making over a million Euros a year.  He claims it will help balance France’s budget.  Others claim this tax will reduce revenue because rich people will simply move out of the country and foreigners will be hesitant to invest.

Here are the top individual income tax rates by country:

France: 75% (proposed)

Sweden: 57%

Japan: 50%

Britain: 45%

Germany: 45%

Italy: 43%

United States: 35%

Canada: 29%

Russia: 13%

Bottom line: France is very different than America.  The current hysteria in America revolves around whether we should allow the Bush tax cuts to expire.  If they expire, taxes on the wealthiest Americans (those making $250,000 or more) will rise from 35% to 39.6%.

Source: “Indigestion for ‘les riches’”, New York Times, 8/8/2010