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Johnny Depp Flees France Over Tax Hikes
Townhall.com ^ | September 3, 2012 | Daniel J. Mitchell

Posted on 09/03/2012 10:25:15 AM PDT by Kaslin

I’m a bad person. I know it’s not nice to take joy in the misery of others, but I can’t help but smile when I see a story about bad news in France.

In my defense, this is not because of hostility to French people, who have always been friendly to me. Instead, France has become the global symbol of statism (particularly since Sweden has been moving in the right direction). The French, for instance, are increasingly infamous for class-warfare tax policy and onerous levels of intervention.

And since it’s my job to promote liberty, I’ll confess that it’s easier for me to convince non-French policy makers that free markets and small government are the right approach when there’s more evidence that statism is failing in France.

So why am I smiling? Well, France wasn’t doing so well under the de facto socialist Nicolas Sarkozy, and it seems that things are looking even worse now that the de jure socialist Francois Hollande is in charge.

Here’s some of what Reuters recently reported.

“It’s always time for a tax hike!”

The French are bleaker about their country’s future than at any time since 2005, a new poll showed on Saturday, with 68 percent saying they are “rather” or “very” pessimistic… Hollande’s government has been reeling from unemployment at a 13-year high and a rash of job cuts in recent weeks at top employers like carmaker Peugeot and retailer Carrefour. The government launched a plan this week to create 150,000 state-sponsored jobs for youth. Only 34 percent of those surveyed were confident in the government’s ability to battle unemployment, and just 20 percent expect the government to be able to improve their buying power. …The poll found that the pessimism extended even to 58 percent of Socialist party supporters.

I’m wondering when the pessimism will spread to investors. France recently lost its triple-A credit rating, but the rating agencies don’t do a good job, so I think it’s much more important to look at the prices of credit default swaps.

In other words, how much does it cost for an investor to insure debt from the French government? According to this CNBC site, France isn’t viewed as being as creditworthy as nations such as Switzerland, Germany, and the United States, but it is closer to those countries than it is to Spain, Italy, or Portugal.

This is just a guess on my part, but I think France is reaching the point where investors are suddenly going to get concerned about the government’s ability to fulfill its promises.

If Hollande follows through on his threat to impose a “patriotic” 75-percent tax rate, for example, that could be the trigger that makes the bond market a lot more skittish. Particularly since it will result in fewer rich people in France.

I’ve already written about French entrepreneurs and investors leaving the country because of Hollande’s class-warfare tax agenda. It’s gotten so bad that even Hollywood types are packing their bags.

Actor Johnny Depp has moved out of France and returned to America because he didn’t want to become a permanent French resident and pay income tax there. …Depp has now moved his family out of France after government officials asked him to become a permanent resident, as he feared he would end up paying tax in both countries. He tells Britain’s The Guardian newspaper, “…France wanted a piece of me. They wanted me to become a permanent resident. Permanent residency status – which changes everything. They just want… Dough. Money… ” Depp goes on to explain that if he spends more than 183 days a year in France he will have to pay income tax in both Europe and America, adding, “So you essentially work for free.”

Wow, complaining that he doesn’t want to “work for free.” What is he, some sort of radical libertarian from the Tea Party?

But he may want to chat with fellow tax-averse actor Jon Lovitz before moving back to America. Obama’s class-warfare agenda isn’t as bad as what Hollande is trying to impose, but it’s not Hong Kong or the Cayman Islands either.

P.S. Here’s a very good Chuck Asay cartoon about the French economy.

P.P.S. In a few areas, France has better policy than the United States.


TOPICS: Business/Economy; Editorial; Foreign Affairs
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To: LibertarianLiz; dfwgator
Check out my mea culpa in #25.
51 posted on 09/03/2012 12:11:35 PM PDT by USFRIENDINVICTORIA
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To: Kaslin
The IRS taxes the income of citizens of the U.S. regardless of where they live or work. Depp, and any other U.S. citizen, receives a credit for taxes paid in a foreign jurisdiction, so the only time he would be paying income taxes to France and the U.S. is when the tax rate in France was lower than in the U.S., and I do not think that has been the case lately.

example:

Depp makes $10M in 2010. Assume France has a 42% tax on income. Depp is a U.S. Citizen residing in France for the full year. He pays $4.2M to the French equivalent of the IRS. He also files a return in the US and reports the $10M in income. Let's assume that it is taxed at 38% (forget about exemptions and deductions for this example). He would file a return showing $3.8M owed to the IRS, but would be given credit for the amount paid to the French taxing authority, up to the $3.8M owed in the US.

Since the United States has lower rates than many other countries, U.S. citizens resident overseas for a full year rarely pay in both places.

The recent stink over Denise Rich renouncing her U.S. citizenship (or the earlier brouhaha over the Brazilian-U.S. dual citizen co-founder of Facebook renouncing his U.S. citizenship) illustrates the case of someone who could live and be a citizen in a jurisdiction with an advantageous tax scheme relative to the U.S., who is facing a windfall or an inheritance which would be subject to U.S. taxation. These expatriates who renounce U.S. citizenship are subject to an "exit fee" set by federal law. But, if the windfall is large enough (e.g., Rich, Eduardo Saverin) the exit fee is no impediment.

52 posted on 09/03/2012 12:16:32 PM PDT by Wally_Kalbacken
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To: Kaslin
The IRS taxes the income of citizens of the U.S. regardless of where they live or work. Depp, and any other U.S. citizen, receives a credit for taxes paid in a foreign jurisdiction, so the only time he would be paying income taxes to France and the U.S. is when the tax rate in France was lower than in the U.S., and I do not think that has been the case lately.

example:

Depp makes $10M in 2010. Assume France has a 42% tax on income. Depp is a U.S. Citizen residing in France for the full year. He pays $4.2M to the French equivalent of the IRS. He also files a return in the US and reports the $10M in income. Let's assume that it is taxed at 38% (forget about exemptions and deductions for this example). He would file a return showing $3.8M owed to the IRS, but would be given credit for the amount paid to the French taxing authority, up to the $3.8M owed in the US.

Since the United States has lower rates than many other countries, U.S. citizens resident overseas for a full year rarely pay in both places.

The recent stink over Denise Rich renouncing her U.S. citizenship (or the earlier brouhaha over the Brazilian-U.S. dual citizen co-founder of Facebook renouncing his U.S. citizenship) illustrates the case of someone who could live and be a citizen in a jurisdiction with an advantageous tax scheme relative to the U.S., who is facing a windfall or an inheritance which would be subject to U.S. taxation. These expatriates who renounce U.S. citizenship are subject to an "exit fee" set by federal law. But, if the windfall is large enough (e.g., Rich, Eduardo Saverin) the exit fee is no impediment.

53 posted on 09/03/2012 12:17:20 PM PDT by Wally_Kalbacken
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To: lentulusgracchus

I expected the really big yachts to sail in 2008 or 2009, but they’re still swinging at anchor in the New York Yacht Club basin (well, except Romney’s — he’s Cayman-flagged now)..... for now.


I thought it flew the Bahamanian flag.


54 posted on 09/03/2012 12:26:01 PM PDT by Rides_A_Red_Horse (If there is a war on women, the Kennedys are the Spec Ops troops.)
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To: bert

Last night, TV news, shot of the yacht. ABC I think.


55 posted on 09/03/2012 12:35:21 PM PDT by lentulusgracchus
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To: bert; Rides_A_Red_Horse
It's easy to metasearch on "Romney flag yacht" ..... like this:

http://tinyurl.com/9qh6vhf

Lazy b*stard.

That's the last one, bert. You've worn out your welcome.

56 posted on 09/03/2012 12:49:39 PM PDT by lentulusgracchus
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To: lentulusgracchus

I thought so. Per Free Republic, the yacht belongs to a supporter

I don’t have the thread though


57 posted on 09/03/2012 12:51:21 PM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
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To: Kaslin

With the way all of these people praise Castro, why don’t anyone of them move to the socialist paradise of Cuba?


58 posted on 09/03/2012 12:52:44 PM PDT by dfwgator (I'm voting for Ryan and that other guy.)
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To: Kaslin

poor poor guy

Now he is a tax dodging rich guy


59 posted on 09/03/2012 12:53:29 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: Kaslin

As an actor, I liked him very much in Fear and Loathing in Las Vegas, and in The Tourist, but I’ve otherwise never been very impressed.

I’m deeply impressed now to see how he’s handling himself as a member of the 1%.


60 posted on 09/03/2012 1:13:44 PM PDT by dagogo redux (A whiff of primitive spirits in the air, harbingers of an impending descent into the feral.)
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To: Kaslin

Depp, meet dork. Dork, Depp.
;)


61 posted on 09/03/2012 1:19:13 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: FlingWingFlyer
Re: “Hollywood “celebrity” frauds want Socialism/Marxism/Communism but they don’t want to have to pay for it.”

Don't forget John Malkovich who fled France in 2003 with his French Marxist wife and children because of a tax dispute.

Malkovich's troubles multiplied after he returned to America and lost millions that he invested with Bernard Madoff.

In fairness, Malkovich claims to be apolitical, and he is a dedicated friend of Israel, so maybe we can cut him a little slack.

62 posted on 09/03/2012 3:31:47 PM PDT by zeestephen
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To: USFRIENDINVICTORIA

“Taxman” was written by George Harrison.


63 posted on 09/03/2012 7:40:06 PM PDT by Texas Songwriter (<)
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To: USFRIENDINVICTORIA

“Taxman” was written by George Harrison.


64 posted on 09/03/2012 7:40:06 PM PDT by Texas Songwriter (<)
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To: Texas Songwriter
Check out my mea culpa in #25.
65 posted on 09/03/2012 7:42:29 PM PDT by USFRIENDINVICTORIA
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To: bert
I thought so. Per Free Republic, the yacht belongs to a supporter

No such thread. I searched FR.

66 posted on 09/03/2012 8:25:44 PM PDT by lentulusgracchus
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To: lentulusgracchus
The yacht was the Cracker Bay, registered in the Cayman Islands; their civil yacht ensign is based on the British Red Ensign (like Bermuda's flag); and government vessels in the Caymans fly Blue Ensign, copying British usage. RMS Titanic, as a Royal Mails ship, flew the Blue Ensign.

From Atlanticwire.com.

67 posted on 09/03/2012 8:35:41 PM PDT by lentulusgracchus
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To: Kaslin

Good Lord! I don’t have a clue on what to say. France is probably the most screwed up country on the planet in the past 200 years. They embrace Socialism and have been importing Ragheads in record numbers. At least fagboy Johnny got out before they surrendered to Germany again.


68 posted on 09/03/2012 9:00:51 PM PDT by wjcsux ("In a time of universal deceit, telling the truth becomes a revolutionary act." - George Orwell)
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To: Revolting cat!

you are correct - the US is the only country with a double taxation.


69 posted on 09/04/2012 4:10:28 AM PDT by Cronos (**Marriage is about commitment, cohabitation is about convenience.**)
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To: Kaslin

Bump.


70 posted on 09/04/2012 8:18:41 AM PDT by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
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To: Happy Rain
Tragic ... so many with so much to live for seem to have no real direction.

Pray for Johnny Depp, to have his heart and mind opened to reality of Jesus Christ, the Son of God, that died to redeem the sinners of this world, whom sincerely seek to know God.
Hollywood is close to being entirely secular, having no belief in God or Creator. It is the education they receive.

71 posted on 09/04/2012 9:57:54 AM PDT by geologist (The only answer to the troubles of this life is Jesus. A decision we all must make.)
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To: Kaslin

Why don’t France, Spain, Portugal and Greece implement the Buffet Rule? Problem solved.


72 posted on 09/04/2012 10:01:56 AM PDT by donaldo
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