Archive for the ‘France’ Category

French Tax Policy: One For You, Three For Me

Friday, August 10th, 2012

French President Francois Hollande’s proposal to take three quarters of the money earned by France’s wealthiest earners is bound to create an economic boost – for Belgium, Germany and other European countries.

The number of high earners in France is low, so the tax will not raise significant revenue, but it very likely will drive many wealthy taxpayers to relocate in other countries with lower rates.  Even many young professionals with the potential to become more successful will likely relocate, according to blogger Mike “Mish” Shedlock, an advisor with SitkaPacific Capital Management.

In comparison, Sweden has a top rate of 57%, Belgium has a top rate of 55% and Great Britain reduced its top rate to 45% from 50%.  France’s top rate is already scheduled to increase from its current 41% to 44%.

President Hollande’s idea of taxing those who earn more than €1,000,000 ($1.24 million) a year at a 75% rate, but “even young, dynamic people pulling in €200,000 are wondering whether to remain in a country where making money is not considered a good thing,” Vincent Grandil, a partner at Altexis, told Newsmax.

“Here, someone who is a self-made man, creating jobs, and ending up as a millionaire, is viewed with suspicion,” Grandil said.  “This is big cultural difference between France and the United States.”

Apparently, he has not been to the United States recently.