The Blubber

France’s leftist alliance would raise the top marginal income tax rate to 90% if it were to take over the government.

France’s leftist alliance plans to raise the top marginal income tax rate to 90% if it wins the legislative elections concluding on July 7.

Eric Coquerel shared this figure in an interview with Cnews television, asserting that the New Popular Front’s proposal would be legally sound and not considered confiscatory, as it would only affect the highest portion of a taxpayer’s income.

Coquerel, who chaired the finance committee at the National Assembly before its dissolution on June 9, did not specify the income level at which the 90% rate would apply. However, the plan was previously included in the program of his far-left France Unbowed party. In a 2019 budget amendment, the top rate was set to apply to taxable income over €411,683 ($440,213).

Currently, France’s income tax rate tops out at 45% on income over €177,106.

The New Popular Front is polling in second place for the first round of the parliamentary election on June 30, behind the far-right National Rally and ahead of French President Emmanuel Macron’s party and its allies.

The last attempt to introduce a top income tax rate near the level proposed by Coquerel was a plan for a 75% rate on incomes over €1 million. This plan was rejected by France’s constitutional court, forcing then-President Francois Hollande to transform it into a levy paid by companies on salaries exceeding €1 million.

The tax implemented by Hollande, who is now running for a parliamentary seat in the current legislative election as a member of the New Popular Front, expired at the end of 2014.

On Friday, the leftist alliance unveiled its plans to tackle the country’s economic challenges with substantial increases in taxation and public spending. The French business community has criticized the group’s economic programs, expressing concerns over plans to raise the minimum wage, reinstate taxes on the wealthy and capital, and reverse Macron’s pension reform.