by Jack
When a government raises taxes on the wealthy to the point they are virtually turning over their paycheck to the national treasury they leave, it’s cause and effect.
When France’s top tax rate suddenly went from 41% to 75% actor Gérard Depardieu said enough is enough and he moved his citizenship to Russia where the tax rate is substantially lower. Also a factor, Russia has a very simple tax system that anyone can figure out and file on one page.
When Russia was transitioning from communism to capitalism they took a hint from the IRS reformers in the USA and they went with a flat tax concept. And why not, it’s so simple, fair and it’s hard to cheat it just makes total sense. Which begs the question, you wonder why our lawmakers still impose the convoluted system on us?
Gérard Depardieu may be the most notable Frenchman to take a hiatus, but he is by no means the only one. Vincent Grandil, a partner in the Paris law firm Altexis, which caters to rich French citizens, is increasingly being asked by his clients if now would be a good time to flee France. “We’re getting a lot of calls from high earners who are asking whether they should get out of France. Even young, dynamic people pulling in 200,000 euros [$250,000] are wondering whether to remain in a country where making money is not considered a good thing.”
France has a population of about 65 million and the new tax rate of 75% will only affect
about 3000 of it’s citizens, so this tax hike can be seen more of a symbolic gesture than an economic necessity. What France’s new socialist president, Francois Hollande, is trying to say with this big tax hike is, you’re income is obscene! It’s a moral affront to a socialist nation for you to make so much money. Sound familiar?
Does it ever!
Obscene is government employees living high on the hog on the backs of taxpayers…recall the bathtub photo of the GSA employee in Vegas and the Obama’s FAT vacations…a president that plays golf more than he attends important security meetings.
Socialist leaders always want to be treated like royalty and reign over the “peasants” expecting high praise for the crumbs they hand out. Narcissists all.
What’s lower on the scale of “turned off” than disgusted?
A 75% top tax rate isn’t our country’s future, it’s our country’s past. I get a chuckle every time I see a conservative intentionally ignore this fact. The top tax rate now is historically low, even with the small increase that happened as part of the fiscal cliff negotiations. Fearmongering about the American wealthy having to “virtually turn over their paycheck to the national treasury” is silly and shows willful ignorance.
Also, Tina reported last week that this tax has already been ruled unconsitutional by the French courts.
“When Russia was transitioning from communism to capitalism they took a hint from the IRS reformers in the USA and they went with a flat tax concept. And why not, it’s so simple, fair and it’s hard to cheat it just makes total sense.”
A flat tax is neither fair nor sensible. There is no way a millionaire and a person living paycheck to paycheck should be paying the same percentage of their income in taxes. That percentage will always hurt the poor man more than the rich man. A flat tax is inherently regressive because it has a greater impact on the poor than on anyone else. This is common sense.
Getting rid of the progressive income tax is a non-starter, but our tax system does need to be simplified and loop holes need to be eliminated. What’s funny is that conservatives like to act as if liberals invented all of these complications in the tax code just for shits and giggles. You see, there are these people called “lobbyists.” Rich people have a lot of them, especially in comparison to poor people. Rich people and corporations lobby very hard for exemptions and loopholes in the tax code that will benefit them. Both Republicans and Democrats have granted their wishes at times in return for monetary and political gain.
If only we could lessen the impact of corporate money in our political system. I think there was a movement of people who wanted to do that a while back. They were called Invade Sesame Street, or something. Or as you know them, some smelly hippies.
Some people are successful, some are not. Those who are deserve what they have earned. What does it matter how much, unless you didn’t steal it? Everybody’s working only the just socialists are sitting and laughing in their modest houses. From the economic point of view I understand Mr.Depardieu’s decision absolutely.