Skip to comments.Stick-it-to-rich tax plan may backfire on France
Posted on 10/18/2012 5:33:51 AM PDT by COBOL2Java
PARIS Frances Socialist government is proposing a slew of taxes on art, on businesses, on the rich that are drawing criticism for stifling entrepreneurship and scaring off the wealthy.
Unfortunately, I think the politics we are leading in France will turn out to be catastrophic for the economy, which is already in bad shape, said French economist Marc Touati, author of When the Eurozone Explodes. This is a serious mistake, something you learn in [Economy 101] it will aggravate the recession and therefore shrink the tax base.
Led by President Francois Hollande, the French government proposed last month a series of tax measures in a bid to reduce the countrys budget deficit and help boost the economy.
The proposals included a tax increase of up to 60 percent on capital gains, up from 34.5 percent; a 75 percent tax on incomes of more than $1.29 million for two years; and a 45 percent tax rate for annual incomes exceeding $195,000.
The 2013 budget proposal already is having an effect on some entrepreneurs ability to raise capital especially abroad, where many Europeans look to escape tight capital markets on the Continent.
(Excerpt) Read more at washingtontimes.com ...
We have ample examples of Socialism failing all over Europe, yet Democrats in the US will vote for Socialism in November when they support Obama. There are none so blind as those who don’t want to see the results of this folly.
I remember in France they told me that if I purchased perfume, that I could get my TAX money back if I showed them I was a foreigner and at the airport, show that it was merchandise going out of the country. I lost about $300, they supposedly was going to credit my credit card of the taxes on perfumes I got stuck with. France is a TAX, TAX, TAX country.
“We have a culture of social class conflict in which success is not valued, where success becomes suspicious.
Says it all, right there.
Methinks that they are rapidly running out of other people’s money! Just another effort to see how gullible an electorate can be.
Are American voters listening? That is the ones who aren’t posting to Twitter about killing Romney for removing their food stamp entitlement or PBS funding or Planned Parenthood ...
The problem is that there is a lack of economic culture in France, said Mr. Touati. The little culture of this type we have is politicized. We have a culture of social class conflict in which success is not valued, where success becomes suspicious.Gee, doesn't THAT sound familiar?
But aren’t the rich just supposed to bend over and take it?
France depends in large part on tourism.
They can kiss this good bye...
Entrepreneurs use resources to make resources
This includes hiring people to do jobs
If an Entrepreneur does not project a positive return on the project
They do not hire, do not create new resources
No Mom and Pop stores,
No Entrepreneurial Efforts.
This is what happens in Socialist Countries
The Economy stops, requiring threats of punishment to continue.
This is stupid
I know several older, very wealthy Swedes who lived through the 60s and 70s. They used to tell me that when the Swedish government raised taxes on high incomes to 90% with no deductions, their companies simply stopped paying them and gave them other types of benefits. Libs just don’t understand that the rich are not going to work for free. If most of incremental income is taken, no one is going to want to bust their hump to earn it.
He had said, I think you are just what we are looking for.”
But when co-founder Valentin Squirelo introduced himself last week to a senior executive there, he was asked, Are you French? Is this a French startup?
Mr. Squirelo nodded yes. The executive raised her hands and said, No, we dont go there. ... “They all told us to come back in 2013.
In the late 70's, or maybe the early 80's, I was talking to an engineer who had worked in Sweden. He said no one would work overtime for money, because the taxes were so high. You had to barter--give them a few pairs of jeans, or something else that was off the books, so they would actually get some benefit for working.
As a foreigner, you are able to buy certain products duty free in France. Yes, you are reimbursed and it is easy to do.
I do not think it is what is being discussed here.
We are talking about the tax on your income and your business gross.
I guess French businessmen shouldn’t have backed the Socialists.
The French need to pay their taxes and shut the hell up. Their government is broke. :)
Robespierre leads the way
Never Seen that one coming...
The history of the 20th century is full of examples of countries that set out to redistribute wealth and ended up redistributing poverty. The communist nations were a classic example, but by no means the only example.