French Constitutional Court Strikes Down 75% Millionaire Tax, Finds It “Unfair”…(WOW!)
by Tyler Durden
In a crushing blow to socialism, wealth redistribution and purveyors of the “fairness doctrine” (as defined here first) everywhere, the French Constitutional Council ruled on Saturday that Hollande’s brilliant idea to tax millionaires at a 75% tax rate – a move which has since seen numerous millionaires leave France and move to Belgium – is unconstitutional. Per Reuters, the Council ruled that the planned 75 percent tax on annual income above 1 million euros ($1.32 million) – a flagship measure of Hollande’s election campaign – was unfair in the way it would be applied to different households. Which is ironic because just like in the US, so in France, the selective wealth redistribution campaign waged by the government against the “rich” (which have yet to be properly defined: those making over $250K? Over $400K? Over €1MM?) was based on the premise that it is only “fair” that the rich contribute more. Turns out fairness in the eye of the government beholder, was unfair. But the move begs the question: would the court have struck down the law had it been a merely 50% tax hike? And if the income cut off was, say, €500,000? The far bigger question is, and has been in this year of encroaching socialism, just what is the definition of “rich”, what is the definition of “fair redistribution”, and where do the two coincide. Finally, how soon until the US Supreme Court weighs in as well on any final Fiscal Cliff tax hike proposal which, like in France, will see the “rich” pay an abnormal share, and will that too be ruled unconstitutional?