French 75 % "millionaire tax" - it's a wealth tax!

Discussion in 'Wealth Creation & Management' started by TreasureHunter, Dec 30, 2013.

  1. TreasureHunter

    TreasureHunter Well-Known Member

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    You can regard this as a wealth tax! It's more than "just a tax". Any time any French citizen makes more than 1 million EUR, the French government will take 75 % away. This is why actor Gerard Depardieu moved out of the cheese eaters' country to the vodka drinkers' country ;)

    First Cyprus (deposit tax), then France (millionaire income tax):
    http://world.time.com/2013/12/29/court-upholds-frances-75-percent-millionaires-tax/

    Why do I say it's a wealth tax?

    Well, 1 million EUR would become the profit maker's wealth, but the French government "prevents" it. It's like eating the egg before it hatches.

    I reckon, it's even worse than a (conventional) wealth tax. These kinds of taxes prevent wealth creation.

    People will start moving out of Europe to even 3rd World countries to save their income & wealth.
     
  2. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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  3. Argentum

    Argentum Active Member

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    i thought most countries laws are designed for the wealthy to reclaim those taxes like when buffet said he pays less tax then his secretary. i thought the 75 % was more of a politcal stunt to make the people think he is taking from rich to give to poor
     
  4. Phiber

    Phiber Active Member Silver Stacker

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    They are now actually getting less revenue than before, as the extremely wealthy take residence in other less ridiculous EU countries such as Belgium.
    The government fools believed that they could get more simply by raising the tax! Now they are realising that there is an optimum level to this madness beyond which revenues actually start decreasing.

    Note that this is for the super super wealthy who earn over 1m a year.
    But France has in addition a wealth tax calculated based in the total value of assets one possesses, including RE. Over Euro 700K, on has to pay a certain percentage (it starts at 0.5% I believe up to 2% a year) of the total estimated wealth, even if this wealth is not yielding any income!
    I remember reading a story about a simple guy who had inherited the family home where he grew up. It happened to be located on a small island just off the coast that became hugely popular in the last couple of decades, driving RE prices to the roof.
    What he had to pay on his wealth tax was over what his pension was and he had no choice other than to sell the house he had lived all his life in, because he could not afford paying taxes to the government.
    Insanity.
     
  5. AngloSaxon

    AngloSaxon Active Member

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    The Laffer Curve. Named after one of Reagan's ministers, who is still alive and still has a very adept economic mind. Whoever ignores history is doomed to repeat it, the French Government has definitiely ignored history.
     
  6. TreasureHunter

    TreasureHunter Well-Known Member

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  7. goldpelican

    goldpelican Administrator Staff Member

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    It's a members only link.
     
  8. DanielM

    DanielM Active Member Silver Stacker

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  9. TreasureHunter

    TreasureHunter Well-Known Member

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    Big bomb - France is thinking about introducing a Facebook/Google/YouTube tax:
    http://www.forbes.com/sites/timwors...y-another-tax-on-facebook-google-and-youtube/
    http://yro-beta.slashdot.org/story/...es-culture-tax-could-hit-youtube-and-facebook

    Some call it "cultural tax". Well, if YouTube, Google and Facebook are "culture"...

    France should tax its cultural places (like tourist attractions, museums) and millions of tourists will avoid that country!

    France is in very deep trouble. It's just unfolding. Italy, Spain... we know the list... France seems to have very big problems.

    One of the things I see coming is that lots of foreign soccer players will simply leave France's football clubs and will work elsewhere instead :p
     
  10. TreasureHunter

    TreasureHunter Well-Known Member

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    Oh? What's that?

    I'm a member and it doesn't work.
     
  11. dccpa

    dccpa Active Member

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    TH you are misreading what the article says. The 50% tax is on the company, not the employee. Other payroll taxes raise the total to 75%. The article does not mention what the tax rate is for the employee.
     
  12. TreasureHunter

    TreasureHunter Well-Known Member

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    I read multiple articles about the subject, but I only posted that URL. Perhaps this one is more clear:
    http://business.financialpost.com/2013/12/30/france-millionaire-tax-approved/

    "The companies that pay out remuneration above 1 million euros will, as expected, be called upon for an effort of solidarity on remuneration paid in 2013 and 2014,"

    Company or not, the salary itself will be affected.

    Here's one about the high-paid footballers that might leave France because of this (December 30th article):
    http://www.forbes.com/sites/robertw...rt-upholds-75-tax-while-footballers-eye-exit/
     
  13. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Would you like a FIG with your PIG?
     
  14. JulieW

    JulieW Well-Known Member Silver Stacker

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    More and more and more mind games to prepare the sheeple for shearing.
     
  15. SilverSaviour

    SilverSaviour New Member

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    Can please explain what you mean ?
     
  16. JulieW

    JulieW Well-Known Member Silver Stacker

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    The powers are talking about how 'the rich' should pay more and more - which is of course agreeable to most people and what is pandered to by the politicians. What the sheeple don't realise is that the definition of 'rich' is being lowered every day and one day, when the boom is lowered on their savings and assets, they'll have already become used to the State thieving people's assets and apart from a few riots there will be mute acceptance. If the powers tried to take 70% of everyone's assets at the moment (as per IMF type recommendations) then there would be blood in the streets. By establishing precedent ('only the rich') it makes it easier to rob everyone else. (we have to save the economy, think of the children').

    As many have reported, Germany didn't wake up one day and decide to get someone like Hitler to clean up the country - it was all done legally and carefully and then one day it was suddenly too late for anyone.

    (Disclaimer: I am a very cautious and cynical observer and believe no change is possible but from within. I already tried to storm the ramparts and there's no point in fighting the State - it will always win. The single truism is that they can't arrest you for what you think, and I hold PMs because stealing them requries outright invasion and theft, not a fat corrupt thumb on a banking kill switch)
     
  17. Old Codger

    Old Codger Active Member Silver Stacker

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    Yet more socialist insanity!

    They will NEVER learn!


    OC
     
  18. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    What's that saying about socialism and OTHER PEOPLE'S MONEY?

    It's a shame the French people have forgotten history. These politicians alwaays START at the top...but ALWAYS work their way down. Just ask a Cambodian...or a Zimbabwean... or an Argentinian....
     
  19. TreasureHunter

    TreasureHunter Well-Known Member

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    FIG=France, Italy, Greece :p

    You should say FPIGS (France, Portugal, Italy, Greece, Spain). Southern Europe is headed towards a Detroit scenrio... just that the process is a bit slower.
     
  20. nonrecourse

    nonrecourse Well-Known Member

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    I choose this as the post of 2013. Knowledge is power and while 80% of the population continue to believe the government is there to help the poor and disadvantaged,..... the poor will just get poorer and poorer.

    I just turned down a very generous subsidy offer by the federal government. I will continue to walk the walk while I talk the talk.

    Things like government aid that seem to be too good to be true are indeed a poisoned chalice (Shakespeare Macbeth)

    Kind Regards
    nonrecourse
     

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