Even France Rejects Socialism

Many American voters lamented that our election choices came down to two highly unlikeable candidates – Hillary Clinton and Donald Trump.

But France’s recent election wasn’t much better. The two leading candidates were Emmanuel Macron and Marine Le Pen. Macron is a “centrist,” which, by French standards could be someone to the left of Fidel Castro. Le Pen is described by media as “far right,” the term used for anyone with views that are not widely accepted by the media, such as not endorsing socialism.

Le Pen might also be described as a crazy racist anti-American, but wouldn’t someone who chooses Russia over the U.S. be far left, not far right?

Center-right Republican François Fillon might have been the new president if he hadn’t been “formally charged in a widening embezzlement investigation” due to allegations that he paid his wife and children “hundreds of thousands of euros from the public payroll for little or no work.” Even in often-forgiving France, nepotism is unpopular.

Macron France’s Youngest Leader

Macron, who was decisively elected president, is France’s youngest leader ever, having been elected at age 39. He is “an outspoken EU supporter who wants to establish a command center for the Continent’s defense, create a border police force, loosen France’s rigid labor rules, cut payroll taxes and reduce French public-sector employment by 120,000,” according to The Wall Street Journal.

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French Tax Policy: One For You, Three For Me

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. read more

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