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Wealthy French Families Taxed Over 100 Percent of Earnings

More than 8,000 wealthy families in France were taxed over 100 percent of their income last year, according to a report in a business newspaper which cited data from the Finance Ministry.

Les Echos reported Saturday that households with assets in excess of 1.3 million euros, $1.67 million, were gouged by a one-off levy last year imposed by President Francois Hollande’s Socialist government.

Nearly 12,000 households paid taxes 75 percent greater than their 2011 revenues, Les Echos reported.

The surcharge was meant to offset a rebate given by the previous government that capped individual tax liability at 50 percent of income. Therefore the measure evens a score with the previous regime, assuming the rich saved money during that time and still had some lying around.

An earlier campaign promise from Hollande said a 75 percent tax would be imposed on all earnings over one million euros. That bill is currently being redrafted after the French Constitutional Council declared it was unfair. Reuters reported the new bill takes aim at businesses rather than individuals.

The council determined that any tax rate more than 66.66 percent on a single household would fall under the category of confiscatory and be met with disapproval.

Sources: Reuters,


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