Laissez-faire: Oui ou Non?
And the answer is…Non!
Expect vast improvements in the services, infrastructure and overall happiness of the French.
French president Francois Hollande’s 75% tax on those earning €1,000,000+ and 45% on those earning €150,000+ is just what the economists ordered.
If you believe Nobel-winning economist Paul Krugman (and you should because: Nobel), the increased tax revenue that is sure to result will lead to increased infrastructure spending which will lead to an economic windfall for generations to come.
The kooks are already claiming this will be detrimental and lead to an exodus. However, the smart and rich are always calling for higher taxes, so if anything I would expect an influx of the world’s wealthy to start clamoring to become French citizens. Many actors in particular are likely to flock there, so expect the next blockbuster to come with English subtitles!
The only downside I can see is that this tax is only temporary. However, I’m sure they can fix that.
This is bad news for Americans however because it once again means that we will be lagging behind other developed countries. Fear not though! Whoever gets elected this November is likely smart enough to follow the French’s lead.