100% Tax Rate

I’ve been paying attention to American politics but they are having an election over in France too. French President Nicholas Sarkozy is facing a tough fight for reelection against Socialist Francois Hollande. Rising in the polls in the more radical leftist Jean-Luc Melenchon, who has some interesting ideas.I should let The Guardian explain.

Jean-Luc Mélenchon, the hard left, anti-capitalist firebrand who is rising in the presidential election polls, is all over the French papers – billed as the great surprise, main event and key revelation of the campaign.

With crowds spilling into the street at his packed rally in Lille this week, and tens of thousands recently flocking to the Bastille to hear him call for a “civic insurrection”, Mélenchon has been credited with 14% in the polls by BVA.

His numbers have catapulted him into the realms of becoming a possible “third man” in the first round vote on 22 April.

His ideas include capping maximum fat cat salaries at €360,000 (£300,000), after which income tax would be set at 100%.

I almost wish he would win. It would be very interesting to see what happens to the French economy if he did manage to set the highest income tax rate at 100% and I think it would be a lesson for anyone else who thinks high taxes are a good idea. I don’t imagine even the French are foolish enough to support that.