French lawmakers voted on Friday the emblematic tax of 75 percent on high income, as announced by François Hollande during his presidential campaign and denounced by the right parties as a symbolic measure that will “bring very little” money to the budget.
This high tax contribution will target incomes above one million per year for the next two years. It would affect about 1,500 people who will pay on average €140,000, for a revenue estimated at €210 million per year.
Minister for the Budget, Jérôme Cahuzac, said that this “legitimate” contribution to the government coffers is not a “confiscation” measure. “Everyone must contribute according to their means” to the common effort of the French citizens. “Why an exceptional charge for two years? Because this is the time of recovery,” he added.
On the other hand, former Housing Minister Benoist Apparu said: “This would allow members of the Government to go on television on Sunday night and say ‘look, we charge the rich 75 percent’. Everyone knows that this will not bring anything and that some of those who earn these money will leave”.
According to his colleague Eric Woerth, former Minister of Budget, “75 percent is a punitive level” and “a very strong paradox: we charge a small category of people enormously, which will bring very little and undoubtedly will cause some (taxpayers) to leave.”
In 2013, the French will undergo a historic austerity cure to restore public deficit to 3 percent of GDP, with an unprecedented effort priced at €36.9 billion, of which €24 billion comes from tax increases, according to the draft budget currently discussed by the National Assembly.
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