If you feel that personal income taxes in the United States are too high, you might be interested to learn that more than 8,000 French households had their 2012 tax bills top 100% of their income.
CNBC, in an article written by Holly Ellyatt entitled: Thousands of French Households Taxed 100%, it was reported that an additional 12,000 households paid taxes that were worth more than 75 percent of their 2011 income and that a further 9,910 households were taxed at more than 85 percent of their income.
The French business newspaper, Les Echos, reported that the excessively high taxes were the result of a “one-off levy” that was imposed on the 2011 incomes of French households with assets of more than 1.3 million euros (approximately $1.67 million). The surcharge was introduced by socialist President Francois Hollande in an attempt to offset the cost of a rebate scheme and taxation cap that had been introduced by former President Nikolas Sarkozy.
In response to the personal income tax changes, the French Constitutional Council said that: “such a high income rate was unfair and could be viewed as confiscatory”. The Council went one step further suggesting that the government should shift the burden to French companies thereby causing a major uproar throughout the French business community.
Perhaps you are wondering what counties have the highest personal income tax rates. Well, Aruba currently takes the top spot with a personal income tax rate of 58.95%. Aruba is closely followed by Sweden at 56.6%, Denmark at 55.4%, Netherlands at 52% and four other countries – Austria, Belgium, Japan and the United Kingdom – all tied at 50%.
The chart below reflects the Top Ten Countries with the highest personal income tax rates and the Average Income in that country.