The reason why they overestimated the revenue they were going to get is because they thought that by raising the taxes on income, VAT, and corporation taxes, they could get all that extra revenue. They didn’t get it, because of the reasons that I outlined in my article. The revenue from the actual tax on the highest tax bracket was the small amounts that I listed above. As you can see, the revenues for that one tax fell drastically from one year to the next, because of the reasons I outlined in my article.
Valls, the PM who made the comment that too much tax kills tax is not some rightie extremist, but a member of the Socialist Party. Another thing I didn’t get into is that how this tax stifled foreign investment in France, and many people said that it killed the competitiveness of France. All countries having the same tax policy is a pipe dream, since all the different countries are on different levels of development, and not even in the EU do they have that.
Anyways for the overall effects of this tax I will turn to the Figaro newspaper:
“ La taxe, qui s’applique aux revenus de 2013 et 2014, devrait rapporter 260 millions d’euros en 2014 et 160 millions en 2015, selon le ministère des Finances. Une goutte d’eau face aux 70 milliards que rapporte l’impôt sur les revenus. Le bénéfice pour les comptes publics a donc été limité tandis que le coup porté à l’image de la France auprès des milieux d’affaires a été important. «La réforme a clairement abîmé la réputation de la France et sa compétitivité», explique Jorg Stegemann, directeur de Kennedy Executive, un chasseur de tête travaillant en France et en Allemagne. «Il est clairement devenu plus difficile d’attirer des hauts dirigeants internationaux en France».””
Translated this states the figures of 260 million EUR in 2013, and 160 million EUR in 2015. All taxes on revenue collected were around 70 billion overall. While the benefits to the public coffers were limited, the image of France for international businesses was damaged. There is a quote stating that the reform damaged the reputation of France and its competitiveness, and that it is now difficult to attract the highest international talent to France.
What does this mean? This means that that supertax on the higher tax levels discouraged companies from investing in France. The fact that they didn’t invest means that the taxes that they would have paid based on that investment never appeared (some investors even left the country, taking their potential tax money with them). You say, 16 (although the tax on the higher tax brackets is only .260 and .160 per year of that) is bigger than 0, however in this this is not true. You did not take into account all the taxes that would have been paid had these measures like higher taxes not been put in place.
More numbers according to the French press:
“ Durant les six premiers mois de 2014, la croissance française a ainsi été nulle (0%), selon la dernière note de l’Insee, publiée le 14 août.”
The growth rate of the economy was 0% during the first 6 months of 2014!