Tuesday, February 28, 2012

Hollande: Too Timid?

Médiapart finds Hollande's tax reform proposal, even with the new 75% levy on incomes over €1 million, too timid by far. Thomas Piketty doesn't go quite that far but is fairly critical of Hollande, even while judging him "infinitely superior" to Sarkozy:
Beaucoup ont donc dit leur déception. Cela a notamment été le cas de l’économiste Thomas Piketty qui, dans un long entretien en vidéo sur Mediapart le 10 février dernier (lire Piketty à Hollande : davantage d’audace !) a regretté que la fusion soit renvoyée à plus tard et que les taux d’impositions soient si peu relevés. L’économiste faisait ainsi ces constats : quand la gauche a quitté le pouvoir en 2002, le taux supérieur de l’impôt sur le revenu était de 52,75 % ; la droite l’a ensuite fait passer à 41 %. Or, puisque François Hollande veut maintenant remonter ce taux à 45 %, « cela revient à valider les deux tiers de la baisse » de la droite, remarquait-il. « Dix ans d’opposition pour en arriver là dans la réflexion fiscale, avouez que ce n’est pas terrible… », déplorait-il.

8 comments:

brent said...

Mélenchon offers the following critique in his blog, which certainly goes in the direction of "davantage d'audace":
Elle [Hollande's plan] va entraîner un effet de seuil très important ! Car elle crée un énorme trou dans la progressivité de l'impôt entre 45 % et 75 %. Les forts taux d'imposition ne sont légitimes que quand ils grimpent graduellement. Pour cela il faut créer de nombreuses tranches. Comment justifier chez Hollande qu'un euro gagné par quelqu'un qui a 990 000 euros de revenus par an soit taxé à 45 %, alors que l'euro gagné par quelqu'un qui aura 1 million de revenus sera taxé à 75 % ? C'est justement pour éviter ces à-coups dans l'imposition que nous proposons, au Front de Gauche, la création de 9 nouvelles tranches pour aller des 41 % actuels au taux de 100 %. Et ce taux ne s’applique que d’après un indicateur qui peut être lui-même discuté et non d’après un chiffre choisi au hasard. Notre tranche à 100% intervient au-delà de 20 fois le revenu médian, soit 360 000 euros par an. La proportion de 20 fois est choisie en parallèle du chiffre de l’écart maximum autorisé dans une entreprise entre le plus haut et le plus bas salaire dans notre plan!

Cincinna said...

A 75% tax on income is confiscatory. Why should anyone work 3/4 of the year to pay the government, and get to keep only 25% of what they earn?
We Americans had a Revolution over that sort of thing, and probably would do so again.
The French who could, would probably leave France and take their money with them, pulling out enormous parts of the tax paying base of the economy, as well as their businesses that employ ....French people.
Seems like Hollande is full of brilliant ideas he has no way if paying for.

Anonymous said...

@ Cincinna:

it is a marginal tax rate.
Someone earning some unclear summ bigger htan but coming to a "revenu imposable" of 1.000.001 a year will keep at least 55,9% of its earning.

Keep revolting, but please at some point engage the last study of Piketty about the maximal marginal tax rate not conterpjavascript:void(0)roductive (at least for the collectivity, for the single individual it could be a lengthy discussion)

brent said...

@Cinncinna
If I'm not mistaken "We Americans" enjoyed marginal tax rates around 70% during the 'glory years' of the post-WWII expansion. There was, as I recall, no "Revolution," just unprecedented prosperity.

JLM's 100% bracket (above E386,000) IS confiscatory, and would probably serve as a cap on salaries. Would that be such a bad thing?

Anonymous said...

Even if it's not very efficient,


@Cincinna: 75% tax ONLY post the one-million threshold; that corresponds to only about 0,01% French people anyway. The measure is not financially efficient, it's symbolic. Either there'd be a more efficient measure later on or that's all Hollande could wrench in terms of fiscal measures.

No matter what, the "people's candidate" sure retreated to his usual speeches when the 0.01% felt threatened. Hard to say you defend the little people when the thought of taxing millionaires gives hives to your representatives.

Poor Sarkozy's having a bad week:
he had to retreat on a statement about a French journalist whom he pretended had been saved (she's still in Homs, both legs fractured)
this morning Arnaud Montebourg came to pick up his partner, journalist Audrey Pulvar, and they were assaulted by a band of thugs who claimed to be FN supporters. (They'd apparently identified them as "jews" -not the term they used and were probably displeased with the sight of a biracial couple.) Marine Le Pen distanced herself from these ... while some UMP representatives were trying to excuse the thugs, who had been "provoked" into their action by the couple's words. ... I'm sure Sarkozy was pleased with that reaction.

Didier said...

I'm quite disappointed with a campaign that boils down to a fight between some lawyers. Journalists can't help but report the commonplace, the buzzwords or the wrong thing the candidates are saying. Neither of them works out a plan for the long term, but just impracticable or inefficient measures. Under these circumstances Mr. Sarkozy has still a chance to win when he promises nothing.

Anonymous said...

@Didier: this latest poll, which seemed sourced back to Le Figaro, says he's not very likely to win.
http://perdre-la-raison.blogspot.com/2012/03/sarkozy-explose-en-plein-vol-seulement.html

Anonymous said...

http://www.sondages-en-france.fr/post/sondage-presidentielle-ifop-27-fevrier-1-mars-2012