Hollande’s 75% Tax Rate Loss Shows Limit of Ability to Tap Rich

A court’s rejection of President Francois Hollande’s 75 percent millionaire tax shows the limits on his ability to tap high earners, even as the ruling is unlikely to attract investors and executives back to France.

“For investors and entrepreneurs, it shows that France can’t be confiscatory, that there are rules that have to be followed,” says Laurent Dubois, a professor at the Institute of Political Studies in Paris. Still, “the government won’t drop the idea, and the commentary from the highest levels of government is anti-rich, and that’s a red flag.”