THE BOUCLIER fiscal tax cap, which stops people paying more than 50 per cent of their income in tax, is to be scrapped in the latest financial reforms announced today by Prime Minister François Fillon.
The prime minister announced this morning that the bouclier, a flagship election policy of Nicolas Sarkozy, is to be scrapped.
The bouclier had become unpopular with politicians on both the left and right, who see it either as protecting the rich from taxation or an obstacle to wider tax reform.
As well as removing the bouclier, the PM announced that reforms to France's wealth tax (impôt de solidarité sur la fortune) would remove 300,000 households from paying it.
The tax will not be scrapped, said the PM, but future reforms would prevent households from paying wealth tax just because of the increasing value of their house. However the exact mechanisms were not specified.
Households with a value of less than €1.3m will not be subject to wealth tax.
Savings in tax-free Livret A accounts and the assurance-vie of small savers would be spared from extra taxation, announced the PM.
He added that there would be no additional income tax bracket for high earners, nor a capital gains tax on the sale of principal homes.
I know, enough money problems in this country to worry about. It never fails to amaze me though when people allow their survival to be put in the hands of others or in the hands of the RICH. Or unions want more money/taxes from the rich. Our government wants more money/taxes from the rich. What makes some people think that the rich will not just pack up their designer luggage, lock the mansion double entry doors, close the family business down and leave? The people with the wealth can do that, just leave.... they are Rich!