France's Disasterous plan.

There is an observation in economics: those things you tax, you get less of and those things you subsidize, you get more. That puts France on a path to disaster.

France's new Socialist government lost little time to bring forth its redistributionist plans. New taxes totaling E7.2B were announced yesterday. New bank taxes, taxes on energy companies and a tax on wealth were announced. All that to keep budget deficits to 4.5%. The marginal tax rate of 75% on incomes in excess of $1M/yr is now scheduled.

That's supposed to promote growth?

This is the experience with taxes like this: people will try to avoid income that puts them over the limit and the wealthy will transfer their wealth to places where they tax less. And the deficit will grow.