Posted on 12/02/2012 7:24:31 PM PST by Lorianne
60% Capital Gains tax – the real innovation killer
Forget taxing the wealthy, forget big government, the French government is eliminating the one tangible reward for building new companies, creating innovation, and providing the French government with a few hundred new employees. This come at a time where France’s big companies are beginning to show their anti-global competitiveness roots - Peugeot is laying off thousands, Bouygues is laying off thousands, and this is just the beginning. For the record, the current Capital Gains tax is set at 32.5%, an 84.6% tax hike.
The Pigeon Movement – France’s Last Hope for Startups.
In the wake of all this built up tension & disappointment from the startup community, a group of entrepreneurs put together a group called “Les Pigeons.” The group grew to over 3,800 members during the weekend alone - a gathering is scheduled to be held Sunday October 7th at 3:00PM in front of the National Assembly, and French startupers across the web have been changing their profile pictures to the pigeon seen to the right in order to spread the word.
According to Ruben Nataf, CM for Whoozer and allegedly the CM for @DefensePigeons, the group was started by Bluekiwi(Acquired by Atos | 04/12 for €20M) & Kwarter founder Carlos Diaz (currently based in SF), along with Whoozer CEO Fabien Cohen.
In French, the term “pigeon” is used to call someone a sucker – and it seems fitting here. Hollande has gone back on his promise to lower taxes paid by SMEs so that they will be less than big companies after tax breaks.
Inspirational thread! Thanks! C’est TRES Bien!!!!!!!!!!!!!!!!!!!!!!!!!
Could make the pigeon the national bird of France....might be appropriate.
Import more Muslims. That will hike the demand for French cars (after they’re torched).
Since Pigeon in French means sucker, that means that the official bird of Communist Obamanation should be one that feasts on dead flesh. Any suggestions?
One that rules by fiat?
One that feeds its young vomited up dead fish?
Ich bin ein pigeon (amerikaner).
Very good choice! The Green Movement headgear gives that imperial touch.
I was thinking more along the lines of a Turkey Vulture. They eat everything that is dead.
Any images of that one in your files?
Buzzards dine on carrion. Penguins, less so, and how can the mascot of Linux be so odious after all?
The Kauffmann Foundation has a rule-of-thumb for venture capital. If you fund 10 startups, two or three are going to go poof and blow up along with your capital. Maybe five will be zombies, that is they will be alive and can pay their bills, but they won’t go anywhere. And about one or two will be home runs with a good exit. All this in between three and seven years.
Only after the home runs come in, do you get your capital gains from which **after taxes and fees** you have money with which to replenish your pool of capital.
In order for this all to work out and for venture capital to be “sustainable” (a concept the left loves to scold the rest of us about), there must be enough return to pay the bills and to replenish the pool. The higher the capital gains tax, the higher the rate of return must be for this all to work out. This means that the VC must be more and more selective, and the pool of deals that are worth the risk of funding grows smaller and smaller.
In other words, a 15% cap gains tax makes doing VC hard enough. A 60% cap gains tax all but kills venture capital.
The greedy socialists grasp at tax revenue and kill jobs and future business formation in the process. The clueless voter is left with his unemployment check, and even that runs out after a while. The VC finds ways of funding startups in jurisdictions with a sustainable tax rate. What is so hard to understand, except for people who are no friends of facts and truth, namely socialists.
Good analysis. This reminds me of the math that drug companies do. Similarly, one successful drug must pay the bills of all the ones that didn’t make it to market, or didn’t do well once they got there.
Good analysis. This reminds me of the math that drug companies do. Similarly, one successful drug must pay the bills of all the ones that didn’t make it to market, or didn’t do well once they got there.
Gasp! A Socialist - has done that? Quelle horreur. I am shocked.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.