Cuba Without the Sun
It drove Gerard Depardieu to relocate to Russia's flat tax paradise (with its 13% flat tax, it is the geographically largest tax haven in the world), and no doubt contributed to the decision of countless young Frenchmen with entrepreneurial inclinations to leave for friendlier places. Mr. Hollande's economic policies have led to noticeable growth of French expat populations in places like London and Hong Kong. The 75% super-tax was of course probably not the only factor in driving many of the best business minds away, but it surely played a role. As current economy minister Emanuel Macron remarked at the time, the tax threatened to turn France into “Cuba without the sun”.
Has any benefit come from this “soak the rich” scheme? Not even the slightest. The revenues flowing into the government's coffers because of it were simply too small to make a difference, while the damage it did to France's reputation was undoubtedly enormous. We previously noted that Mr. Hollande has nothing left to losewith his approval rating at the lowest level ever attained by a French president, so he finally has some leeway to push through reforms, although a plethora of vested interests are arrayed against these plans. The latest sign that things are changing is that the super-tax has been quietly allowed to expire. Reuters reports:
