French Constitutional Court Approves 75% Tax On High Earners

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posted on Dec, 29 2013 @ 02:39 PM
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France has decided and the constitutional court has approved a 75% tax on "high earners" who make over €1 million. With the EU free border policy I wonder how long it's going to take before there's an exodus to more tax friendly locations? Supposedly this is only to last two years. Sure it is.


French Constitutional Court Approves 75% Tax On High Earners



Almost a year ago, the French constitutional court ruled against Francois Hollande's triumphal blast into socialist wealth redistribution, with his proposed 75% tax rate on high earners, and so indefinitely delayed the exodus of the bulk of French high earners into more tax-hospitable climes. That delay is now over, when earlier today the same court approved a 75% tax on all those earning over €1 million. The proposal passed after the government modified it to make employers liable for the 75% tax. As BBC reports, the levy will last two years, affecting income earned this year and in 2014.

Hollande, who once said he “didn’t like” the rich, announced the 75 percent tax in February 2012 as part of his presidential campaign to appeal to his Socialist base. It has become a symbol of his government’s record-high taxation rate.

So this is coming from a guy who doesn't like the rich. That's rich. Apparently Hollande doesn't really dislike the rich, just those richer than he is. There seems to be a lot of this going around.

As well as the spacious Paris apartment Hollande owns a palatial villa in Mougins, the prestigious hill-top Cannes suburb where the artist Pablo Picasso used to live.

It is valued by the Official Journal at €800,000 (£642,000), and is just a short drive from Hollande's two flats in the Cannes. They are each priced at €230,000 (£185,000) and €140,000 (£112,000).

Hollande has promised to cut his pay by 30 per cent after he is officially sworn in as President next week, but he will still be on €156,000 (£125,000) a year, plus fabulous expenses and other perks. Link




posted on Dec, 29 2013 @ 02:45 PM
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Wow, I am all for taxing the ultra wealthy (1%) at those rates. Someone that only makes a million a year though? Kinda steep...... So yes there will be an exodus of wealthy leaving. For what it is worth If I remember right the tax rate was right about 50% already. They do get a lot for their money though. Like Healthcare......



posted on Dec, 29 2013 @ 02:58 PM
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reply to post by Mamatus
 


Yeah, the top 1% have nothing to fear from this, it's the small to medium size business owners who may take the hit. And a few celebrities like the football players the article mentioned.

I'm wondering if this isn't something the progressives in the US would love to implement as well. Obama's big push to boost his second term ratings is going to be focused on income inequality in his next state of the union address.



posted on Dec, 29 2013 @ 03:07 PM
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Wow 75% is a huge tax.I wonder if the French have laws there like we have here in the states.There's a major tax on peoples money when they leave the country.



posted on Dec, 29 2013 @ 04:08 PM
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I'm someone with a socialist heart. But 75 % tax is ridiculous !

What is the reason given for such a high percentage ?

I'm pretty much convinced any redistribution of wealth won't be even close to the answer.
As the money will not be used to aid the needy.



posted on Dec, 29 2013 @ 04:16 PM
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reply to post by Sinter Klaas
 


As far as I can tell supposedly this is a show of national solidarity (because it's temporary?) but my thoughts are this is just a money grab to plug budget shortfalls and a way to show he's sticking it to "rich" people. Sticking it to the rich was pretty much his election platform.



posted on Dec, 29 2013 @ 04:32 PM
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reply to post by Bassago
 


so Hollande is making sure that he does do something he said to do ?

I do not agree the with the way he makes himself getting of easy.



posted on Dec, 29 2013 @ 05:31 PM
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reply to post by Mamatus
 


1 million Euros is more than a million dollars. It's actually about 1.3 million in our money, which would be about 975,000 dollars in taxes. The French have had much higher rates. You would be left with a little under 400,000 dollars. While this seems horrid you might want to know that's still an awesome wage in France and you can live quite well. Those who receive inheritance but otherwise do not make that salary are exempted from the tax.

As for flight-Nope, not happening. This has happened several times throughout France's modern history and rich people didn't run off. There are many ways to make money in France and it's a great place to live. France is currently feeling the pressure. One of their top officials stated this year that is was "1788" again. That is one year before the revolution, you figure out what he meant by that. They have to do something. Is it the right thing? I don't know.

As for Tax Havens, Monaco was the big one for years, but they backed off after General De Gaulle threatened to ram a tank down their throats. There are few left for French Citizens. It should be noted this is not a PROFIT tax, it is a tax on SALARY. There is a very big difference between the two. This is meant to curb what some see to as excessive compensation of CEO/Executive officers. Profit taxes have been high for years and yet France still has a high GDP and is attractive for business.



Either way, the French have had Profit taxes as high as 90% with little impact on the numbers of the rich population in France. They stayed, they will likely stay now. Where are they going to go? France has one of the highest living standards in the world. As a person who has been there, I assure you the French upper crust wouldn't dream of skipping across the pond to this country for the most part. They tend to say rather nasty things about it.
edit on 29-12-2013 by antonia because: opps, forgot a word
edit on 29-12-2013 by antonia because: added a thought



posted on Dec, 29 2013 @ 05:41 PM
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Haha!

Good!

Hopefull all the rich will bring there money and buisness over the channel to the uk!

Funny i was only reading a artical about how stagnent the frebch economy is and how the uk is setto over take even germany in the next 15 years.



posted on Dec, 29 2013 @ 05:43 PM
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On the flip side don't they have 'Free' health care?



posted on Dec, 29 2013 @ 05:45 PM
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reply to post by crazyewok
 


Yes, according to some think tank. I would take it with a grain of salt. It is likely we will see pressure from the population soon as we are almost 7 years into a worldwide recession. This is when the unrest tends to start.



posted on Dec, 29 2013 @ 05:47 PM
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reply to post by SLAYER69
 


No, you pay a fee. It is simply far less than what one would pay otherwise. For example, a root canal in France will run you about 40 dollars. I paid far more for that and I had insurance.



posted on Dec, 29 2013 @ 05:51 PM
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reply to post by antonia
 


Well that's a good deal then. In 1998 I paid almost $450.00 for mine.

Who picks up the rest of the Dental tab?



posted on Dec, 29 2013 @ 06:06 PM
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reply to post by SLAYER69
 


The government picks up a little over 70%. Without reimbursement, it runs a little under 100 Euros due to price controls. It should be noted you can have private insurance in France if you so wish.
en.wikipedia.org...
edit on 29-12-2013 by antonia because: added a thought



posted on Dec, 29 2013 @ 06:21 PM
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reply to post by antonia
 


Having 400K euros left over after taxes sounds like a lot, if you are an individual. Unfortunately if you're a small business owner with say 10 employees this tax hit would wipe them out (and the employees too.) The article were slim on details about that sort of thing though. Any info on these type situations?



posted on Dec, 29 2013 @ 06:23 PM
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reply to post by antonia
 


Where did the subsity from this root canal come from? or did the dentist charge you half what a plumber would charge to plunge your toilet happily and cheerfully???



posted on Dec, 29 2013 @ 06:25 PM
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Bassago
reply to post by antonia
 

Unfortunately if you're a small business owner with say 10 employees this tax hit would wipe them out (and the employees too.)


Again, it is not a PROFIT tax, it is a tax on Salaries. There is a clear difference between the two.



posted on Dec, 29 2013 @ 06:43 PM
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Mamatus
Wow, I am all for taxing the ultra wealthy (1%) at those rates. Someone that only makes a million a year though? Kinda steep...... So yes there will be an exodus of wealthy leaving. For what it is worth If I remember right the tax rate was right about 50% already. They do get a lot for their money though. Like Healthcare......



Not many people make $1m/year, this would be a fraction of the 1%. There are a LOT of millionaires out there, it's really not that hard to become a millionaire so long as you're savvy. But there's a big difference between accumulating $5m over 10 years and making $5m every year. This tax rate effectively taxes only the ultra wealthy. Good or bad, it's hard to say, personally I think the destructive power of the Oligarchs in Western Society is severe enough to curb through means such as this.



posted on Dec, 29 2013 @ 06:53 PM
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reply to post by Bassago
 





With the EU free border policy I wonder how long it's going to take before there's an exodus to more tax friendly locations?


Good...let the bloody vultures piss off then, good riddance...we'll embargo their tax havens too.

The wealthy like to imagine they are the drivers, movers and shakers in this world...the reality is, they're absolutely NOT.

We are.

The house of cards is shakey...don't be under a collapsing house.



posted on Dec, 29 2013 @ 06:56 PM
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reply to post by Rockpuck
 




personally I think the destructive power of the Oligarchs in Western Society is severe enough to curb through means such as this.


I think so too but this tax isn't going to hurt them. They have other ways of receiving compensation and if they are powerful and wealthy enough just use global mechanisms to avoid taking the hit.

Those football players are going to get hammered though.





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