« | »

‘The Rich’ May Flee France Over 75% Tax Hike

From a highly amused New York Times:

Indigestion for ‘les Riches’ in a Plan for Higher Taxes

By LIZ ALDERMAN | Tuesday August 7, 2012

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% tax on the portion of anyone’s income above a million euros ($1.24 million) a year.

And how long does anyone think the cut off is going to remain at a million euros?

“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.”

How foolish of them!

A chill is wafting over France’s business class as Mr. Hollande, the country’s first Socialist president since François Mitterrand in the 1980s, presses a manifesto of patriotism to “pay extra tax to get the country back on its feet again.”

Hollande sounds like he is channeling Joe Biden, who said it was patriotism to pay more taxes. But sounding like Joe Biden is never a good thing.

The 75 percent tax proposal, which Parliament plans to take up in September, is ostensibly aimed at bolstering French finances as Europe’s long-running debt crisis intensifies.

But because there are relatively few people in France whose income would incur such a tax — an estimated 7,000 to 30,000 in a country of 65 million — the gains might contribute but a small fraction of the 33 billion euros in new revenue the government wants to raise next year to help balance the budget…

So the threshold for ‘rich’ will have to be lowered from one million euros to something like 200,000 euros.

In that regard, the tax could have enormous symbolic value as a blow for egalité, coming from a new president who has proclaimed, “I don’t like the rich.”

Now Hollande sounds like he is channeling Barack Obama.

“French people have an uncomfortable relationship with money,” Mr. Grandil said. “Here, someone who is a self-made man, creating jobs and ending up as a millionaire, is viewed with suspicion. This is big cultural difference between France and the United States.” …

Alas, this is not true anymore. Thanks to the relentless leftist propaganda spewed by every part of our culture over the last sixty years.

Many companies are studying contingency plans to move high-paid executives outside of France… They say some executives and wealthy people have already packed up for destinations like Britain, Belgium, Switzerland and the United States, taking their taxable income with them.

They also know of companies — start-ups and multinationals alike — that are delaying plans to invest in France or to move employees or new hires here

All France has to do is outlaw anyone taking money out of the country. Just like they did in the USSR and Nazi Germany and all of the better third world dictatorships.

Whether many wealthy residents will actually leave and companies will change their plans, of course, remains to be seen… But some wealthy people left after Mr. Mitterrand raised taxes in the 1980s. And more recently, the former Victoria’s Secret model Laetetia Casta, the restaurateur Alain Ducasse and the singer Johnny Hallyday caused a stir by moving to countries just across the border to escape the French treasury’s heavy hand

La guillotine! La guillotine!

Buried in the 16th paragraph of this article we find this startling admission:

Taxes are high in France for a reason: they pay for one of Europe’s most generous social welfare systems and a large government. As Mr. Hollande has described it, the tax plan is about “justice,” and “sending out a signal, a message of social cohesion.”

Which, once again, sounds remarkably familiar.

France has a 33 percent corporate tax rate — the euro zone’s second-highest, after Malta’s 35 percent. That contrasts with the 12.5 percent rate in Ireland, which has deliberately kept a lid on corporate taxes as a lure to businesses.

Somehow The Times fails to note that the US has a corporate tax rate of 39%, which is the highest in the world.

“It is a ridiculous proposal, but it’s great for us,” said Jean Dekerchove, the manager of Immobilièr Le Lion, a high-end real estate agency based in Brussels… “It’s a huge loss for France because people and businesses come to Belgium and bring their wealth with them,” Mr. Dekerchove said. “But we’re thrilled because they create jobs, they buy houses and spend money — and it’s our economy that profits.”

Which is a lesson that seems to have escaped Barack Obama and the editors of the New York Times.

This article was posted by Steve on Wednesday, August 8th, 2012. Comments are currently closed.

4 Responses to “‘The Rich’ May Flee France Over 75% Tax Hike”

  1. GetBackJack says:

    I think Obama and his communist sandbox playmates would rather live in squalor and ruin than live with modernity.

  2. JohnMG says:

    ….“But we’re thrilled because they create jobs, they buy houses and spend money — and it’s our economy that profits.”

    …..”Which is a lesson that seems to have escaped Barack Obama and the editors of the New York Times……”

    Don’t even go there, Steve. Things that have escaped notice by the two aforementioned worthies…….well, let’s just say you don’t have the band-width to handle it.

  3. Right of the People says:

    “Which is a lesson that seems to have escaped Barack Obama and the editors of the New York Times.”

    It hasn’t escaped them at all. It’s all part of the Ohole’s master plan.

  4. beautyofreason says:

    I really hope that these countries cave in from their own stupidity.

    France is a beautiful country; maybe if all of the productive people left than the people would be forced to make wiser decisions about their government.

    Who is it that said capitalism is an unequal sharing of blessings, socialism is the equal sharing of misery (unless you are a politician).

« Front Page | To Top
« | »