Skip to comments.France’s Socialist 75 percent tax rate is economic suicide
Posted on 10/01/2012 12:38:49 AM PDT by UnapologeticConservative
Back in May I wrote a piece describing Francois Hollandes election victory as emblematic of the EUs decline, noting that his government promises to be a symbol of everything that is wrong with Europe today. True to his election campaign promise, the new French president, together with his prime minister Jean-Marc Ayrault, has outlined his plans for a 75 percent marginal income tax rate tax on anyone earning more than 1 million Euros a year.
This is economic suicide for the second biggest economy in Europe, a supreme act of financial har-kiri for a country whose public debt has now risen to 91 percent of GDP, a growth of 30 percent in five years. This is part of 20 billion Euros worth of new taxes, mainly on businesses and high earners, unveiled by a backward-looking Socialist government seemingly intent on economic self-destruction. As Jean-Paul Agon, chief of LOreal told The Financial Times earlier this week, it will now become almost impossible for France to attract leading business talent.
(Excerpt) Read more at blogs.telegraph.co.uk ...
In a word... Duh!
When France sinks like the Titanic a new government will need to rise to establish order—I believe the salvation will be with Madam LePen and a conservative neo-fascist rule. Fewer freedoms but the nation will be saved. Fascism is like a poison pill—a drastic cure that works but like bad medicine has awful side effects. It will not be like Nazi Germany—that was Fascism on steroids—it will be more like Mussolini’s Italy or Evita Peron’s Argentina. Look to see the President of France become the Leader—and a 6th Republic formed. That’s what happens when things go south.
More like Le Duh.
I would make these observations.
This tax hike has been hinted for months and most tax experts had already warned their clients to prepare. Several countries surrounding France have indicated that they’d easily accept the folks leaving. Then you have question over how many will pack up, and I’m of the mind that fifty percent of the people affected will shift money around through various accounts, and finally disappear one day....to be found the next over in Italy or Spain as a new resident. The executives of corporations? They probably will shift their headquarters over to Luxembourg or the Netherlands...then quietly move their family out in the middle of the night.
The damage done....will be noticed in about eighteen months. The tax office will admit half of the affected don’t live in France anymore. The idiots who started the mess will say for a year that it doesn’t matter, while the tax office admits that they are now missing a bit of money which has to be made up. The natural course is to now tax the next class after the super-wealthy...so they will attempt that. By the fourth year, anger and hostility will be brewing over this whole mess.
I think also the growing Muslim populations in the UK, the Netherlands and France could lead to civil war and military government.
You raise some good points.
Coming soon to the U.S.
People that don’t understand numbers sicken me. If the US FedGov outright CONFISCATED all the money from everyone that makes over $1M in this country, it would olny fund the govt for about 75 days.
Taxing is nothing but class warfare of envy and jealously.
It’s spending in the first place that causes 2-dimensional thinkers to unthinkingly blurt out that taxes must be raised instead of spending cut.
Socialist stuck on stupid!
I agree. An Obama victory in the election will mean the end of life in America that has been for the past 200+ years. We will enter a absolutely new era in American life and no one is going to be happy. Not even the dead beats, because the free money will run out.
You must mean all the wealth (savings, investments, etc).
Taking all income over a half-million or so would fund the gov’t about 2 days. And that’s assuming recipients don’t cut their incomes to $0 the instant the 100% rate is announced.
Ronald Regan, as actor, did not make more than 2 movies per year because that would have put him in a 92% tax bracket.
It won't take that long. The muzzie enclaves will start trouble as soon as the understand the weakness this tax rate will create.
Good the French deserve it, inasmuch as they voted for their socialist president. And the USA will deserve the consequences if Bam is coronated for another four years...or 8....or 12, as he and his cohorts due away with ehe 2 term presiddency.
Plenty of French sailboats are arriving in Florida, and not just for short visits.
It’s an old dodge; sink all of your savings into a boat, sail away, don’t come back. South Africans did it for decades. Now the French.
Fascism's only difference with Communism is that Communists seek to own the means of production.
They are both vile totalitarian forms of Government that snuff out the middle-class in exchange for total control by a self-elected oligarchy.
First they will prevent the money from leaving French banks.
Then French citizens.
It has become obvious that politicians of all stripes value getting elected over patriotism. Hollande HAS to know that this is a FOOLISH tax policy, as are his policies on retirement age, work hours, & pensions. So, his only reason for promising these things was to get elected, even if those policies are disastrous for France.
Republican gov’ts such as France, Britain, & the USA depend on the honor & patriotism of their elected leaders to exist & thrive. But our elected leaders are incredible LIARS & pursue policies transparently destructive to the country.
I'm not sure humans are morally capable of sustained democracy & the rule of law. Certainly, the Republican form of democracy is failing badly, as the ignorant masses elect & reelect liars, thieves, & sociopaths.
The picture reminds me of the company I worked for. When a program goes “red” or having problems. You will get management folks come in from the East Coast and you get more management than you ever wanted. They institute mandatory unpaid overtime, work on weekends, any and all vacation is canceled. Lastly, the dress code gets more formal like no casual Friday or weekends too.
I never worked on a “red” program but hearing from other, it was horrible. As pertaining to this picture, East Coast management is equivalent to Government Intervention.