France may levy a "special rich tax". What's going on here?

The French National Assembly (the lower house of parliament) voted in the evening of 2013 10/8, and approved the imposition of the "sp

France may levy a "special rich tax". What's going on here?

The French National Assembly (the lower house of parliament) voted in the evening of 2013 10/8, and approved the imposition of the "special rich tax" with a high tax rate on individuals whose annual salary exceeds100000 euros (about RMB 8.3 million) this year and next, with the actual tax rate approaching 75%. The rich tax means that the government imposes personal income tax on high-income people.

Why should we levy a "rich tax"

To put it bluntly, this practice is to rob the rich and help the poor. Bernard cazeneuve, the French minister in charge of budget affairs, said that the new tax is not aimed at "successful people", but at the "special contributions" made by high-income people in the difficult period of public finance. He stressed that it is necessary for France to take this temporary tax measure in line with the principle of "fairness" during the period of rectifying public finances.

The impact of high taxes

Before the 1980s, there was a big gap between the rich and the poor in the United States and Britain, and the contradictions were also sharp. Especially after the Second World War, the high tax rate and marginal tax rate of personal income tax in western countries (the higher the income, the higher the income) sometimes reached 80%, and even reached 90% in Britain. There is a contradiction behind the high tax rate: the tax rate is so high that all the money earned is handed over, which naturally affects the enthusiasm for investment and work. So in this context, some people simply don't work and travel with their families and mouths.

For the rich, the more they earn, the more taxes they pay. So many rich people began to avoid taxes reasonably. For example, personal investment and property transfer, immigration to countries with low tax rates. The impact on the economy and employment of the former country is quite huge.