Taxes Exceed 100% in France
May 21, 2013 Taxation in France
PARIS – Some households in France have been paying more taxes than they have actually earned in recent years, and thousands of other households payout more than three quarters of their income.
Over the weekend new information was released by the newspapers in France, claiming that in recent years some wealthy French households have faced income tax rates of more than 100 percent.
The exceptionally high tax rates were caused by a wealth levy which was imposed on households with assets valued in excess of EUR 1.3 million.
The tax was implemented in 2012 and applied for the 2011 fiscal year, and was intended to raise approximately EUR 2.3 billion in extra taxes for the year.
Due to the tax an estimated 8 010 households in France paid out an effective tax rate of more than 100 percent, while 9 910 households faced tax rates higher than 85 percent, and 12 000 saw a tax of more than 75 percent.
In the past some households in France had faced tax rates exceeding 100 percent, however, the total payments were capped at 50 percent by a “tax shield”, which was redacted in 2012.
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