French business publication Les Echos reported last week that the French government sent more than 8,000 wealthy households a tax bill last year that, incredibly, topped 100 percent of their income.
Those who earned more than 1.3 million euros were subject to hand all of their money — and then some — to the government, thanks to a special levy imposed by the Socialist government as a way of undoing a rebate plan the outgoing administration had, mercifully, devised to cap the tax rate at 50 percent of income.
A French administrative court has told President Francois Hollande that any taxation on individuals that exceeds 66.66 of their income is confiscatory. Before that ruling, Hollande had been preparing a proposal that would have allowed individual earnings of more than 1 million euros to be taxed at 75 percent. That would have a fulfilled a key campaign promise that, remarkably, helped get Hollande elected.