Cash-strapped Europe nations are not shy about taxing the rich

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http://articles.latimes.com/2012/oct/25/world/la-fg-europe-wealthy-tax-20121026

Cash-strapped Europe nations are not shy about taxing the rich
France has announced a top tax rate of 75%, and even in economic powerhouse Germany there's talk of a higher levy.
October 25, 2012 | By Henry Chu, Los Angeles Times

... Last month, the Socialist government of French President Francois Hollande decided to increase its take on earnings above $1.3 million to an eye-popping 75%, a "supertax" that has dismayed those who have to pay it and delighted those who don't. By contrast, Belgium's top income tax rate is 50%...

France's government, however, is hardly alone in its desire to extract more from its richest citizens. Higher taxes may be political poison in the U.S. right now, but on this side of the Atlantic, where once-booming countries have tumbled back into recession and are desperately trying to ease their debts, the idea of getting the rich to contribute more to the public purse is increasingly part of the national debate.

France's staggering top rate, which in practice affects only a few thousand people, is the most publicized example of a wealth tax in Europe. In other countries, proponents have urged higher levies on total assets or on property and other luxury items, such as yachts.

Critics say a tax designed to "soak the rich" is a surefire way to damp investment, stifle innovation and destroy jobs. Supporters call it basic fairness, arguing for greater responsibility from the highest earners at a time when inequality across Europe is becoming worse. ...