the French income tax rate increases

[rob in cal]

    Assuming newly elected French President Hollande can actually get his income tax increases through the National Assembly we will see a great test case of how people react to a massive rate increase, albeit just a small amount of people.  He proposes to increase the 40% rate to 75% on all income above a million euros, (not sure where household size comes in on this though), and it will be fascinating to watch how big earners react.  I wonder how many of them there are, and how many make just into that million euro area and so wouldn't be too effected.  Also, how many might slack off a bit, once their rate jumps that high.

[opebo]

'Slack off a bit'?  You imagine that such people every do any toils at all?  What a fantasy!  They idly collect exactions from the working classes they control.

But I agree it is quite possible they will try to do their exploitation more by remote control from Monaco or Andorra, if they can't be stopped.

[rob in cal]

   I'd like to see a breakdown of income sources for those making one million or more per year.   In the US, earned income is a pretty substantial source of income for the top 1%, not just investment income.  Its the earned income portion in France that I'd guess will go down significantly if one saw a jump from 45% to 75% over a certain level.  The highest level now is 40% but Holland also proposes a raise of 40 to 45% and then the new rate of 75% above a million.

[opebo]

   I'd like to see a breakdown of income sources for those making one million or more per year.   In the US, earned income is a pretty substantial source of income for the top 1%, not just investment income.  Its the earned income portion in France that I'd guess will go down significantly if one saw a jump from 45% to 75% over a certain level.  The highest level now is 40% but Holland also proposes a raise of 40 to 45% and then the new rate of 75% above a million.

Nonsense.  What someone labels their income as at that this grand level is entirely up to the lord or lady in question.

[phk]

Set salaries at 999,999.99

[© Tweed the Younger]

Set salaries at 999,999.99

why would that matter?

[opebo]

Set salaries at 999,999.99

Yes, please start with mine...

[ag]

Set salaries at 999,999.99

Do you really think there is a jump in tax liability once a threshold is reached? )

[Badger]

Set salaries at 999,999.99

I'm not sure you're clear on how progressive taxation works.....

[Torie]

Set salaries at 999,999.99

I'm not sure you're clear on how progressive taxation works.....

You don't think that when you hit a million euros, suddenly your first million is taxed at 75%, implying a marginal rate for a band of income of some fantastic percentage like 5000% or something (I will let Muon2 do the maths on this one)?  

[opebo]

I don't see why people are jumping to the conclusion that phnk doens't understand progressive taxation - nothing in his post implied this.  He's just saying - don't pay people more than 1 million euros and they won't face the 75% incremental rate.  It is an admirable suggestion, though I can think of a better solution.

[shua]

Set salaries at 999,999.99

Do you really think there is a jump in tax liability once a threshold is reached? )

Instead of having one executive making 1.1 Mil and another making 700 K, they might even them out a bit so they're both below the 1 Million mark.  Companies might also set more salaries below one million and add more untaxed benefits. 

[Yelnoc]

Set salaries at 999,999.99

Do you really think there is a jump in tax liability once a threshold is reached? )

Instead of having one executive making 1.1 Mil and another making 700 K, they might even them out a bit so they're both below the 1 Million mark.  Companies might also set more salaries below one million and add more untaxed benefits. 

Hurray for the stock option?

[Badger]

I don't see why people are jumping to the conclusion that phnk doens't understand progressive taxation - nothing in his post implied this.  He's just saying - don't pay people more than 1 million euros and they won't face the 75% incremental rate.  It is an admirable suggestion, though I can think of a better solution.

No, his implication seemed to be that taxation at a million euros a year would cover the entire million euros.

Maybe not what he meant, but it's how it read.