France plans 75% tax rate on rich!

[Locutus]

PARIS — The call to Vincent Grandil’s Paris law firm began like many others that have rolled in recently. On the line was the well-paid chief executive of one of France’s most profitable companies, and he was feeling nervous.

President François Hollande is vowing to impose a 75 percent tax on the portion of anyone’s income above a million euros ($1.24 million) a year. “Should I be preparing to leave the country?” the executive asked Mr. Grandil.

The lawyer’s counsel: Wait and see. For now, at least.

“We’re getting a lot of calls from high earners who are asking whether they should get out of France,” said Mr. Grandil, a partner at Altexis, which specializes in tax matters for corporations and the wealthy. “Even young, dynamic people pulling in 200,000 euros are wondering whether to remain in a country where making money is not considered a good thing.”



more (or less)


http://www.nytimes.com/2012/08/08/b...-leave-if-75-tax-rate-is-passed.html?_r=1&hpw

 

[CDNBear]

There's no evidence that higher taxes drive high earners out of the affected area.

 

[L Gilbert]

Perhaps not, but in the very least I bet a pile of their money will end up in Swiss, Cayman, etc. banks.

 

[CDNBear]

Perhaps not, but in the very least I bet a pile of their money will end up in Swiss, Cayman, etc. banks.

I actually don't know and don't care.

I was just parroting the NDP shills that bleated that when McSquinty caved to the NDP here, for sh!ts and giggles.

 

[taxslave]

There's no evidence that higher taxes drive high earners out of the affected area.

I guess they all forgot about England when even their favorite rock stars had to leave the country before the socialists stole all their money.

 

[damngrumpy]

I hear this nonsense about socialists stealing peoples money and the
end of the world is coming because France is going to tax the rich.
I think 75% is way over the top that part I agree with. However, it should
be pointed out, that this is what happens when rich people have a free
ride for decades. The rich should be no more privileged than the middle
class. and the middle class pays for everything.
The rich should willingly be responsible to the communities they serve.
Oh wait big corporations are on the planet to take and be responsible to
no one. They hand out bonus payments when they are broke and get
money from the government, instead of investing it in jobs.
It is high time that companies paid just for the privilege of being on the
Stock Markets of America, Canada and Europe etc. It would be a new
tax on these shill operators who profess to be working for mankind and
the environment, with green this and green that. The business community
have become parasites living of the avails of the middle class pleading
poverty while their CEOs and shareholders horde away billions while the
roads and infrastructure go to hell in a hand basket.
Not 75% but they should be paying a lot more. People all over the world
are about to turn on the greedy basta*ds and it serves them right/
The new slogan should be MAKE the BASTa*ds Pay.
end of rant

 

[WLDB]

There's no evidence that higher taxes drive high earners out of the affected area.

Maybe not in general but it did drive a lot of musicians out of the UK in the 60s and 70s.

It may say NDP on my profile but even Id say this tax hike is insane. Even if the rich all stay its just really high.

 

[Bar Sinister]

Escaping high taxes works only for those who can make their living equally well outside the country and that is a very small minority, such as a few people in the entertainment industry and even they will be taxed on any earnings they make in France. WLDB is right about people like Mick Jagger fleeing Britain, but there very few citizens who make more money outside their home country than they do in it.

 

[coldstream]

I think its a coming trend. The utter failure of laissez-faire capitalism has led to vast polarization of wealth, distinctly tilted towards those in parasitic and completely unproductive speculative activities, making them grotesquely rich in countries riven with desperation and poverty for the have nots..

The BIGGEST proviso in this scheme is it MUST include Capital Gains at the full the marginal rate. That would be healthy for the economy and society. And if you don't want to live in some tax haven like Togo land.. where it will be almost impossible to make a living.. it could be that there will be no escape from taxes.. just like there's no escape from death.

Britain as i remember it had a top tax rate of 98% coming much lower than $ 1 million before that cackling hag Thatcher came in.. so this might be deemed somewhat generous to the rich.

 

[Bar Sinister]

Britain as i remember it had a top tax rate of 98% coming much lower than $ 1 million before that cackling hag Thatcher came in.. so this might be deemed somewhat generous to the rich.

Not just Britain actually. Here are the top tax rates in the US for 1913 to now. Pay particular attention to the marginal rates up until 1982 when Ronald Reagan began to reduce taxes on the ultra-wealthy. I find it interesting that the time period just before Reagan is remembered as the highest level of prosperity for the US middle class in its history. You might also notice that the 1980s were the beginning of the rapid increase in the massive national debt the US.

Partial History of Marginal Income Tax Rates Adjusted for Inflation
Income First Top Bracket
Year Brackets Bracket Rate Income Adj. 2011 Comment 1913 7 1% 7% $500,000 $11.3M First permanent income tax 1917 21 2% 67% $2,000,000 $35M World War I financing 1925 23 1.5% 25% $100,000 $1.28M Post war reductions 1932 55 4% 63% $1,000,000 $16.4M Depression era 1936 31 4% 79% $5,000,000 $80.7M
1941 32 10% 81% $5,000,000 $76.3M World War II 1942 24 19% 88% $200,000 $2.75M Revenue Act of 1942 1944 24 23% 94% $200,000 $2.54M Individual Income Tax Act of 1944 1946 24 20% 91% $200,000 $2.30M
1954 24 20% 91% $200,000 $1.67M
1964 26 16% 77% $400,000 $2.85M Tax reduction during Vietnam war 1965 25 14% 70% $200,000 $1.42M
1981 16 14% 70% $212,000 $532k Reagan era tax cuts 1982 14 12% 50% $106,000 $199k " 1987 5 11% 38.5% $90,000 $178k " 1988 2 15% 28% $29,750 $56k " 1991 3 15% 31% $82,150 $135k
1993 5 15% 39.6% $250,000 $388k
2003 6 10% 35% $311,950 $380k Bush era tax cuts 2011 6 10% 35% $379,150 $379k
Source: Income tax in the United States - Wikipedia, the free encyclopedia

 

[TenPenny]

I guess they all forgot about England when even their favorite rock stars had to leave the country before the socialists stole all their money.

You mean the rock stars like U2, who demand that governments spend money on international aid, while they structure their own affairs to reduce taxes owed?

 

[petros]

in the very least I bet a pile of their money will end up in Swiss, Cayman, etc. banks.

(a non targeted general reply to those who are confused about taxation.....)
Why? Only the interest is taxable. Just put it in a savings accuont and you won't make **** all on it. Another thing. They can't take what you already made int he past. Assets are non-taxable.

 

[CDNBear]

Post #1629242 - Re: France plans 75% tax rate on rich! Good mentalfloss

Gives me a thumbs up for mocking him and the Usual Suspects...

What a moroon...

 

[L Gilbert]

I actually don't know and don't care.

I was just parroting the NDP shills that bleated that when McSquinty caved to the NDP here, for sh!ts and giggles.

lol.

(a non targeted general reply to those who are confused about taxation.....)
Why? Only the interest is taxable.

..... as well as capital gains and dividends.

Just put it in a savings accuont and you won't make **** all on it.

.... and it won't be taxed till you draw some out either.

Another thing. They can't take what you already made int he past. Assets are non-taxable.

Are assets income? Or are the gains made from assets income?

 

[Toro]

Good news.

Maybe we can convince the French rich to move to Canada.

 

[55Mercury]

Good news.

Maybe we can convince the French rich to move to Canada.

Would they be able to pass Quebec's language exam? lol

 

[Blackleaf]

However, it should
be pointed out, that this is what happens when rich people have a free
ride for decades.

Why should people be penalised just because they managed to become rich and successful?

It's hardly an incentive, is it? People will think; "I'm not going to set up my own business be rich and successful because my government will punish me for doing so."

If the French Socialists think that taxing those who worked hard enough to be rich and successful will help their economy then they are in for a rude awakening.

It's good to see David Cameron - who is reducing Britain's income tax rate from 50% to 45% - trying to encourage France's rich and successful businessmen to bring their businesses with them to London.

 

[coldstream]

Why should people be penalised just because they managed to become rich and successful?

It's hardly an incentive, is it? People will think; "I'm not going to set up my own business be rich and successful because my government will punish me for doing so."

If the French Socialists think that taxing those who worked hard enough to be rich and successful will help their economy then they are in for a rude awakening.

Unfortunately most of those getting super rich in the current economic paradigm are those involved in speculative trading, through currencies, securities, carbon credits, real estate, usury.. who add NOTHING to the productive economy.. in fact represent a parasitic element that sucks on its lifeblood.

It's bad for society to have the vast polarization of wealth that is the characteristic of this type of economy. Systems that produce greater equity.. structurally or through taxation are good.. for all. At one time the top marginal tax rate was above 90% throughout the developed world.. but still produced the greatest increase in popularly shared wealth in the history of world (1946 - 1971).

It was only after the regressive tax orthodoxy of Free Markets entered that things started to fall apart.. and continue to fall apart.

And the rich can keep 25% of everything over a million $ that they make (included should be capital gains at the full marginal rate, ex primary residence)..that's enough for anyone who isn't eaten out inside by greed and envy.

Most truly creative people are not driven by money anyway.. but a sense of accomplishment and social obligation. They'd like a fair reward.. but they wouldn't want to become like Tolkien's Gollum.. corrupted utterly by his golden ring.

 

[L Gilbert]

Would they be able to pass Quebec's language exam? lol

Probably not. A Belgian friend of mine was told by a Franc that he ought to learn to speak French one time. The guy was a French teacher in Belgium. That was good for a chuckle.

Unfortunately most of those getting super rich in the current economic paradigm are those involved in speculative trading, through currencies, securities, carbon credits, real estate, usury.. who add NOTHING to the productive economy.. in fact represent a parasitic element that sucks on its lifeblood.

It's bad for society to have the vast polarization of wealth that is the characteristic of this type of economy. Systems that produce greater equity.. structurally or through taxation are good.. for all. At one time the top marginal tax rate was above 90% throughout the developed world.. but still produced the greatest increase in popularly shared wealth in the history of world (1946 - 1971).

It was only after the regressive tax orthodoxy of Free Markets entered that things started to fall apart.. and continue to fall apart.

And the rich can keep 25% of everything over a million $ that they make (included should be capital gains at the full marginal rate, ex primary residence)..that's enough for anyone who isn't eaten out inside by greed and envy.

Most truly creative people are not driven by money anyway.. but a sense of accomplishment and social obligation. They'd like a fair reward.. but they wouldn't want to become like Tolkien's Gollum.. corrupted utterly by his golden ring.

Yeah, the rich never spend anything there, nor do they already pay taxes on whatever they spend their money on, no property taxes or anything like that. They also don't already supply the gov't with more tax euros than the 90% of other taxpayers.

http://en.wikipedia.org/wiki/Taxation_in_France

 

[Nuggler]

:dontknow:C'est le guerre, non?