Overview

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France’s left-wing New Popular Front says it is preparing to implement a programme that includes a 90 per cent tax rate on the rich after winning Sunday’s snap parliamentary elections. A 90% tax on income above €400,000 (currently about £338,000) is part of a proposed income tax scale with 14 brackets, a policy of the France Unbowed party (La France Eric Coquerel, a leader of one of the New Popular Front says that the tax would “not be considered confiscatory” because it would only have an impact on “the highest portion

France\'s New Popular Front Proposes 90% Tax on High Earners

France\'s political landscape is undergoing a seismic shift, with the newly formed New Popular Front coalition outlining a bold economic agenda should they win the upcoming snap parliamentary elections. A key element of their platform is a proposed 90% tax on income above €400,000.

What is the New Popular Front proposing?

The New Popular Front, a coalition of left-wing parties, aims to implement a progressive tax system as part of their broader policy initiatives. This includes a significant increase in the top income tax rate. According to reports, the proposed tax scale would feature 14 brackets, culminating in a 90% tax on income exceeding €400,000. Currently, €400,000 is approximately £338,000.

The 90% Tax Debate: Confiscatory or Fair?

The proposal has sparked intense debate, with critics labeling it as potentially "confiscatory." However, Eric Coquerel, a leader from France Unbowed (La France Insoumise), a key component of the New Popular Front, argues that the tax would “not be considered confiscatory” because it would only apply to “the highest portion” of extremely high earners\' income. He emphasizes that it is a targeted measure aimed at addressing income inequality and funding public services.

Impact of the 90% Tax

The potential impact of a 90% tax on income above €400,000 is multifaceted. Supporters argue that it would generate substantial revenue for the government, enabling investment in areas such as healthcare, education, and social welfare. They also believe it could help reduce the growing gap between the rich and the poor.

Conversely, opponents worry that such a high tax rate could disincentivize investment, drive wealthy individuals and businesses to leave France, and ultimately harm the economy. They argue that it could lead to tax avoidance and hinder economic growth.

New Popular Front\'s Broader Economic Plan

The 90% tax on income above €400,000 is just one piece of the New Popular Front\'s wider economic program. Their broader plans include measures to increase the minimum wage, strengthen worker protections, and invest in green energy initiatives. The coalition aims to create a more equitable and sustainable economy for France.

The outcome of the upcoming elections will determine whether the New Popular Front has the opportunity to implement its ambitious economic vision, including the controversial 90% tax on high earners. The debate surrounding this proposal is likely to continue intensifying in the lead-up to the vote, shaping the political discourse and influencing the choices of French voters.

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