Vive la France: Govt taxes high incomes at high rates to reduce deficit
“This is a serious budget, it’s a leftist budget and it’s fighting budget,” Finance Minister Pierre Moscovici told French radio station Europe-1 Friday morning.
Because Hollande promised that he would slash the country’s deficit to 3 percent next year — a limit required by European rules — the government must find €30 billion in savings. One-third will come in spending cuts, with the rest in new or higher taxes on the wealthy and big companies, including a 75 percent tax on incomes over €1 million (about $1.3 million –Mitch).
Among the other measures included are: a new income tax level at 45 percent for those making more than €150,000 (about $200,000 –Mitch), an increase of capital gains taxes to bring them more in line with how salaries are taxed, and a cap on certain deductions for large companies on their income taxes.