French Council Strikes Down Socialist President's 75% Millionaire Tax
French Council Strikes Down Socialist President's 75% Millionaire TaxKYLE BECKER DECEMBER 29, 2012 1:12 PM
In "fundamentally transformed" America, the Democratic President of the United States Barack Obama wins re-election running on the exact same talking points as the openly socialist French President Francois Hollande: let's jack up taxes on the rich.
The French Constitutional Council struck down all that noise, at least for now. In a stunning defeat for Hollande's class warfare platform, France nixed the initiative to make the rich pay more to ‘close the deficit' (which was run-up by an overspending government).
Reuters ran the story, which provides some stats on France's economic malaise:
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.
Although it is entirely possible that the French council will see things socialists' way (after all, the hard left has run France for decades), its decision brings into relief the national debate in the United States today. The class-warfare mongering Frenchies have the guts to call themselves socialists, so why doesn't America's Democrat Party? Could it be the track record of disaster the party is afraid of?
As America heads hysterically towards a ‘fiscal cliff' that would cut government spending and seetaxes increase on the middle class and the rich, witness the only sticking point on a deal for the millionaire president Barack Obama, who is living like a billionaire on the taxpayers' dime: a hike in the top marginal rate to 39.6% from 35%.
[And for those who think French affairs have little bearing on the United States, look no further than the glibly named "Robin Hood Tax" implemented this month: a 0.2% (foot-in-the-door) global confiscatory tax on business transactions, raising funds to be redistributed throughout the world. One of the unnamed ‘good causes': lining the pockets of corrupt UN bureaucrats and third world dictators (an increasingly obsolete epithet).
One myth popular on the left that should be dispelled is that the effective marginal tax rate of 90% following World War II actually led to American prosperity. Besides this philosopher's stone of reasoning having no causal linkage to explain how, the narrative is demonstrably false: World War II wiped out nearly all of the U.S.' competitors, since the nation's mainland was untouched from invasion. Of course, if one subscribes to the Paul Krugman "broken window" school of economics, an invasion from aliens the Japanese would have led to even more relative economic growth.
The point is this: Raising taxes on the rich confiscates resources from the productive sector of the economy (which benefits citizens by keeping prices lower, and people employed at productive jobs) and puts more money in the hands of spendaholic politicians, who blow money arbitrarily for their own re-elections, as well as in the hands of of bored bureaucrats, who invent ever-more wasteful and counter-productive spending projects to keep their jobs secure.
Because they are "greedy," business owners care about their own enterprises and will take care that they run them efficiently by producing things that people actually want (see "how to make a profit"). Because politicians are power-hungry, they will seize funds as they see fit, and spend them to bribe constituents; whether or not those funds are spent efficiently.
But it makes "progressive" politicians feel generous to spend wealth they did absolutely nothing to generate, and nothing will stop that from happening politically unless the culture begins to reject this fake altruism. The way to improve the economy is for people to do something productive and profitable; and the less government punishes people for doing so, the more economic activity we will have.