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France set to drive away the rich?

#1
BBC News - France budget: Taxes favoured over spending cuts

France has unveiled its budget for 2013, avoiding big austerity spending cuts in favour of higher taxes on the wealthy and big businesses.

French Prime Minister Jean-Marc Ayrault confirmed that there is to be a new 75% tax rate for people earning more than 1m euros (£800,000; $1.3m) a year.

But he insisted that nine out of 10 citizens will not see their income taxes rise in the new budget.
I'm rather curious to see just how many people decide to upsticks and relocate from this.
 
#5
This kind of things has been going on with French businesses for a long time , not just the rich.

As a French business you can easily relocate to London then be home every evening , in Lille for example for your tea.

(Not that The Frogs have tea). Or if they do, it is shite!!!.)



To be with your vigorous, urgent , French slim, tight wife.

(Are we in the NAFFI bar by the way?)
 
#6
Interesting spin on their budget by the BBC. Everyone else seems to think Le President has made some drastic cuts and the increase in taxes is a rather petty and self-defeating measure to take the French publics eye off the broken promise.
 
#7
Presumably the very rich will move to another of their houses in a more tax friendly country, while those a bit further down the pay scale will find it worthwhile to employ a tax consultant, or the French equivalent. Tax revenues will probably not change much, but gives the champagne socialists a nice warm feeling.
 
#8
If french tax laws are like german tax laws all they need is a good tax consultantand he will find them all the loopholes they want.
 
#9
This kind of things has been going on with French businesses for a long time , not just the rich.

As a French business you can easily relocate to London then be home every evening , in Lille for example for your tea.
That would be a bit silly though. France may have the highest rates of business taxation in Europe but Britain has the second highest. Better relocate to Ireland for tax purposes where the government will accept an annual sack of spuds for tax purposes.

The 75% tax rate is a stunt by the lefty government in France. IIRC it'll raise less than a billion Euros and that's assuming that no rich Frogs flee abroad. I hear estate agents in the wealthier parts of London are now taking on French speaking staff so it looks very likely that Mr Laffer will be proved correct again and Mr Hollande will be getting 75% of nothing instead of 45% of a million Euros.

Funnily enough, that counts as an act of economic genius if you're a socialist.
 
#10
It is very possible that our wonderful socialist government has misread the situation considering one our country’s biggest privately owned companies is involved in a major industrial dispute. One, when it escalates, which it certainly will, will throw Pizza Deliveryman's calculations into disarray as there will be substantially higher unemployment in three regions: Brittany, Normandie & Pays de la Loire as well as a knock on effect in the UK, Eire and Spain. Around 18,000 jobs either directly or indirectly will be effected.

His idea was to soak the rich, unfortunately for him they are going to be the ones doing the soaking as they will be setting their losses against taxation. In other word they get money from the state.
 
#11
It will be an interesting "experiment" to see if it works. Some are saying the best way out of a recession is to spend more and increase taxes on the rich. Others say the best way is to reduce taxes and cut spending or perm any 5 measures out of 10 given by the so-called experts. If France comes out of this stronger then it may prove one of the ideas. If France now goes the same way as the Greeks and Spanish, what acronym would the pundits come up with? FPIGS? I suppose PFIGS (silent P like the German Pfennig) would fit but the Portuguese would be forgotten.
 
#13
BBC News - France budget: Taxes favoured over spending cuts



I'm rather curious to see just how many people decide to upsticks and relocate from this.
If the rich need to move then in this day and age of globalisation and mobility (of both themselves and their loot) then off they will go and the French government, like any other, full well know this.

So this is just soundbite stuff for the masses to keep them happy and that means more votes for Ayrault so he is happy. He will allow the tax loopholes to continue so that the rich do not pay any more and they are happy, everyone's a winner :)
 
#14
It will be an interesting "experiment" to see if it works. Some are saying the best way out of a recession is to spend more and increase taxes on the rich. Others say the best way is to reduce taxes and cut spending or perm any 5 measures out of 10 given by the so-called experts. If France comes out of this stronger then it may prove one of the ideas. If France now goes the same way as the Greeks and Spanish, what acronym would the pundits come up with? FPIGS? I suppose PFIGS (silent P like the German Pfennig) would fit but the Portuguese would be forgotten.

High Income taxes rates have already been tried. Didn't work. High Corporate tax rates have already been tried. Didn't work.
 
#15
High Income taxes rates have already been tried. Didn't work. High Corporate tax rates have already been tried. Didn't work.
Yep. 1970s. Dennis Healy reckoned he'd squeeze the rich "until the pips squeak" by applying 98% tax on unearned income. All those pop stars and famous actors would be crying into their Bollinger as Dennis redistributed their wealth to Arthur Scargill and the TUC.

Except that's not what happened.

The rich simply relocated abroad. Meanwhile the courts in England ruled that interest payments counted as unearned income. Pensioners who were living off building society interest promptly found themselves destitute. Nice.
 

jarrod248

LE
Gallery Guru
#16
Yep. 1970s. Dennis Healy reckoned he'd squeeze the rich "until the pips squeak" by applying 98% tax on unearned income. All those pop stars and famous actors would be crying into their Bollinger as Dennis redistributed their wealth to Arthur Scargill and the TUC.

Except that's not what happened.

The rich simply relocated abroad. Meanwhile the courts in England ruled that interest payments counted as unearned income. Pensioners who were living off building society interest promptly found themselves destitute. Nice.
I can't recall my Grandparents being destitute in the 70's. My Grandmother managed to shop at M&S and they even afforded meat.
 
#17
Saying that the rich will relocate away from French food and French women is like suggesting moving from Monte Carlo to Market Harborough to meet more exciting girls.
 
#18
It will be an interesting "experiment" to see if it works. Some are saying the best way out of a recession is to spend more and increase taxes on the rich. Others say the best way is to reduce taxes and cut spending or perm any 5 measures out of 10 given by the so-called experts. If France comes out of this stronger then it may prove one of the ideas. If France now goes the same way as the Greeks and Spanish, what acronym would the pundits come up with? FPIGS? I suppose PFIGS (silent P like the German Pfennig) would fit but the Portuguese would be forgotten.
I suppose you could have PIIGS SHIT, the shit being Socialist High Income Tax, or SHIFT, Super High Income French Tax

Taxi !!
 
#20
Yep. 1970s. Dennis Healy reckoned he'd squeeze the rich "until the pips squeak" by applying 98% tax on unearned income. All those pop stars and famous actors would be crying into their Bollinger as Dennis redistributed their wealth to Arthur Scargill and the TUC.

Except that's not what happened.

The rich simply relocated abroad. Meanwhile the courts in England ruled that interest payments counted as unearned income. Pensioners who were living off building society interest promptly found themselves destitute. Nice.
One of the big reasons why (a lot of) Europeans are doomed is that they always try to penalize the successful and rich - no one here ever seems to say "I could be that one day!" when they come across a rich/ successful person, all they seem to do is be jealous and moan about them. There doesn't seem to a spirit of aspiration.....
 

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