France’s 75% ‘Supertax’ Crashes & Burns, Quietly

Once a flagship policy of French President Francois Hollande, the 75-percent “supertax” on top earners limps into its final weeks this month having sparked plenty of controversy but few economic results.

It was no surprise that the policy, which expires on February 1, would be quietly dropped: it was only ever slated to last two years and the Socialist government has for months declared it would not be renewed.

The tax had also been watered down until it was barely a shadow of the “exceptional contribution to solidarity” proclaimed by Hollande when he came to power in 2012.

France’s top court had declared as unconstitutional the original plan to levy the tax on all individuals earning one million euros ($1.2 million).

The government came back with a version that made companies pay the 75-percent rate only for the portion of employees’ salaries above the million-euro ceiling.

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