NYT: Indigestion for ‘les Riches’ in France’s tax plan

[sinkingfeeling]

http://www.nytimes.com/2012/08/08/business/global/frances-les-riches-vow-to-leave-if-75-tax-rate-is-passed.html?pagewanted=all

PARIS — The call to Vincent Grandil’s Paris law firm began like many others that have rolled in recently. On the line was the well-paid chief executive of one of France’s most profitable companies, and he was feeling nervous.

President François Hollande is vowing to impose a 75 percent tax on the portion of anyone’s income above a million euros ($1.24 million) a year. “Should I be preparing to leave the country?” the executive asked Mr. Grandil.

A chill is wafting over France’s business class as Mr. Hollande, the country’s first Socialist president since François Mitterrand in the 1980s, presses a manifesto of patriotism to “pay extra tax to get the country back on its feet again.” The 75 percent tax proposal, which Parliament plans to take up in September, is ostensibly aimed at bolstering French finances as Europe’s long-running debt crisis intensifies.

But because there are relatively few people in France whose income would incur such a tax — an estimated 7,000 to 30,000 in a country of 65 million — the gains might contribute but a small fraction of the 33 billion euros in new revenue the government wants to raise next year to help balance the budget.

[still_one]

1. That is a big difference than say impose a 75% tax on the rich. What it say is impose a 75% tax a

portion of income above a million

I have seen misrepresentations say it would call for 75% without the details

[ProgressiveProfessor]

2. Be interesting to see what happens

Euro law will figure in it as well.

[sinkingfeeling]

3. Just like here. The rich would rather hide their money or move or

give up their citizenship than to actually help their country.

[ProgressiveProfessor]

4. The tax codes in the US and elsewhere encourages that in many ways

[kenny blankenship]

5. Should I be preparing to leave the country?

Probably it would be the greatest gift you could give France, Monsieur, worth many times the few francs it would collect on you if you'd stayed.