© Robert Pratta / Reuters
President Emmanuel Macron of France says plans to abandon a Mitterand-era asset tax will encourage wealthy people to stay in the country. Opponents of the politician, whose popularity is sliding among left-leaning voters, claim the proposal is a handout to the rich.
In its current form, the solidarity tax on wealth (ISF), introduced by the Socialists in 1982, forces all French households with assets of over €1.3 million to pay an additional percentage, whatever their previous income tax contributions. Around 350,000 households currently pay the ISF, which tops out at 1.50 percent, and brings in over €4 billion of revenue.Macron's government has argued that the tax encourages the wealthy to invest in assets - houses, cars and yachts - outside of France, or to pour their money into financial instruments exempt from the levy. It says 10,000 people worth €35 billion have left the country altogether as a direct result of the ISF.
"When a taxpayer leaves, he pays no more tax at all, not the ISF, not income tax. Collectively, all the French lose," conservative prime minister Edouard Philippe, recruited for Macron's cross-party government in May, said earlier this month.
"We need a tax code that favors investment in the economy," Macron argued during a conference in the Estonian capital Tallinn Friday, citing France's sluggish economic growth rates in the past decades.
Comment: Saakashvili probably comes second only to former President George W. Bush for being the most goofy, ridiculous and idiotic of political psychopaths to grace the world stage. His antics and will to power are now epic. See a sampling of his numerous fiascos!