75% tax rate passed in France!

Discussion in 'Politics, Religion, Social Issues' started by stylinexpat, Dec 29, 2013.

  1. macrumors 6502a

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  2. macrumors 65816

    citizenzen

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    #2
    Salaries above $1,370,000.00.

    You must be very well paid.
     
  3. macrumors 603

    Technarchy

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    #3
    François Hollande has a 15% popularity. This is sure to earn him a few more enemies before he is booted in 2017.
     
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    jnpy!$4g3cwk

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  5. Technarchy, Dec 29, 2013
    Last edited: Dec 29, 2013

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    Technarchy

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    Completely different historical and economic conditions.

    For example the USA had a 3.9% unemployment in 1946 while France has near 11% unemployment...and no "WWII" expense...

    Also France only has 280,000 millionaires, but a population of 62.6 million. Does anyone actually believe this equation can possibly balance the books? It will for sure create a few more Gérard Depardieu's who simply relocate to avoid the tax.
     
  6. thread starter macrumors 6502a

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    They are milking their people in France. 20% VAT rate is also not low. At the moment France is not at war with anyone.

    http://www.vatlive.com/vat-rates/european-vat-rates/eu-vat-rates/
     
  7. macrumors 68000

    Sydde

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    #7
    from your link,
    France VAT Rate Standard VAT rate: 20%
    Reduced VAT rates:
    10% pharmaceuticals, passenger transport, admission to cultural sporting and entertainment events, hotels, accommodation, restaurants
    5.5% medical, foodstuffs, ebooks, books
    2.1% newspapers, pharmaceuticals​
    Yeah, "milking their people" is clearly hyperbole. And "their people" are not getting nothing for their taxes.
     
  8. macrumors 68040

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    #8
    So that would leave someone with that exact salary, with only $342,500. That's freaking ridiculous.
     
  9. macrumors 6502a

    jnpy!$4g3cwk

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    #9
    What?

    That isn't the point, I'm sure. A million Euros is enough spending money for anyone, and, any more than that will be misspent on expensive yachts or misused to finance the kind of political nonsense that the plutocrats use their money for in the U.S.

    Another benefit. It has been all downhill since La chèvre and Les compères. I never could reconcile Depardieu's alleged friendship with Fidel Castro and his whining about what he thinks he is entitled to spend. That he prefers to be a Russian citizen than a French citizen -- says a lot.
     
  10. macrumors 68030

    G51989

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    #10
    The French people are not really " milked ", yes they pay higher taxes than people in the US of A do. But they enjoy a much higher standard of living, better healthcare, better transit systems, better schools, better roads, better safety nets, better working conditions, and much less wealth inequality. Their government also does a much better job regulating their food supply, so they even eat better to.

    Money well spent.

    France is also engaged in extensive military operations in Africa.

    I would say most Americans are " milked " far harder, all their taxes get them is broken down infrastructure, overpriced schools and bad healthcare. As well as a giant military that sails around the world defending America from nothing.
     
  11. macrumors 68000

    Sydde

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    Well, consider the case of the late Mr. Jobs. He would have two bits left after taxes. (My point being that executive compensation packages include a lot more than just "salary").
     
  12. macrumors 68030

    .Andy

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    #12
    From reading the link I thought it was only the proportion of income that falls into the highest tax bracket that will be taxed 75%. Not a flat tax on all income. I could well be wrong though...
     
  13. macrumors 6502a

    jnpy!$4g3cwk

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    I can't tell exactly what you mean, but, the French rates are marginal rates above certain thresholds just as in the U.S. As stated in the article, the 75% rate applies to that part of the salary above 1 Million Euros per year.

    Here is a real-estate website in English with a (now slightly outdated) explanation of various taxes.

    http://www.french-property.com/guides/france/finance-taxation/taxation/
     
  14. macrumors 68020

    JoeG4

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    #14
    Pft, laws like this are ********.

    I may be wrong on this, but don't people that make that much money either (a) get hired on as a consulting firm so that their "company" is making the money and not them, or (b) take the majority of the money as stock/stock options and not on a W2 paycheck?

    The tax liability for getting that much on a W2 is insane.
     
  15. macrumors 603

    thekev

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    #15

    Is that implicit sarcasm? Even if you didn't read the article, you should be aware that marginal tax rates only apply to income above the point where they kick in. Otherwise such a system doesn't work as you can effectively lower your take-home at certain thresholds. This also misses the point of how it's applied. You might want to read the article. They are apparently imposing a "duty" on wages. I'm not sure how this balances out with whatever capital gains like system they have in place.

    That's true in the US. Do you know how it works in France? That's a non-rhetorical question. I know almost nothing about their system. My other comment was directly related to the article.
     
  16. macrumors 68030

    G51989

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    #16
    This is France, I could be wrong, but I do not think they have the same type of loop hole filled system that the US does. I have noticed lots of things are very difference in France.

    However I could be wrong, French tax code is highly confusing.

    Were as France is a Democracy, America is a plutocracy with no functioning Representative goverment.
     
  17. macrumors 603

    Technarchy

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    #17
    It should be the point otherwise all you've got is government seizure without purpose.

    France is in a very precarious economic situation as is, and to attempt balancing the books on a tiny segment of the population with 19% of the wealth is economic stupidity. Especially in Europe where mobility is quite easy for the the wealthy.

    It's akin to saying Detroit can be fixed by raising taxes to 75%.

    The USA could get away with a higher tax rate because we have way more wealthy with much more wealth hoarded. France though...
     
  18. macrumors 6502a

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    #18
    Maximum flat 15% personal income tax here in Hong Kong and the only sales tax is on petroleum products, tobbaco and some cosmetic products. No VAT. :D
     
  19. thread starter macrumors 6502a

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    #19
    They get you with fuel tax,transport cost and housing costs. Hard to beat Hong Kong otherwise. Much lower taxes compared to Europe. You don't need to pay ridiculous permit fees which are another source of tax that one has to pay in California. Each sink at a barber shop will cost you almost $1500 in California. The permit for the sink is over $1K per sink! In Hong Kong you don't have any of these BS permit fees either.
     
  20. macrumors 6502a

    jnpy!$4g3cwk

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    Curbing excess consumption, and, preventing the flow of money into politics are both valid public benefits.

    But, the implication of what you write here is basically trickle-down economics, a policy with millennia of failure to show for it:

    I don't know whether the French taxes are structured to encourage investment or not. When the U.S. had high tax rates, the system worked to curb excess consumption by the wealthy and to encourage job-creating investment. The result was three decades of low unemployment during which most people felt that the economy was working.
     
  21. macrumors 68030

    G51989

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    #21
    This is a fairly short sighted view on France.

    Keep in mind, France/Germany are basically partners on every possible level, the main reason France isn't doing so hot is that its propping up the entire EU.

    France and Germany for example will be in a FAR better position in the future, as they have invested in education and infrastructure as America has not.
    The EU will be the next big upcoming power, along with China.

    Most American wealth is based off the fact that the dollar is the worlds reserve currency, once that is gone, expect a crash worse than the one in 1929, hyper inflation and probably the end of America as we know it today, it will turn into Neo China or Mexico.

    ----------

    Remember, most Americans think things like lobbying and money in politics is not only normal, but that it is a good thing. America is very much a nation of " me me me me me " and not a nation of " we "
     
  22. macrumors 68030

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    That's the way it works. Otherwise it would be pointless as people would simply refuse to be paid that much when they could earn less and take home much more.
     
  23. thread starter macrumors 6502a

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    #23

    That is also because the employer in the US has to pay another tax to the government on top of the wages he or she pays their employee. Those workers comp taxes add up and can deter businesses from hiring.
     
  24. Technarchy, Dec 30, 2013
    Last edited: Dec 30, 2013

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    Technarchy

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    Good luck with that theory

    At best the EU equals the USA's GDP, has whole nations going down the toilet, and the USA is the largest contributor to the IMF, which is propping up a huge chunk of the Euro zone banking system.

    China is one of the larger beneficiaries of globalism. It's a house of cards. If the USA goes down, everyone gets dragged down the toilet with us. The Eurozone, Canadians, Mexicans, OPEC, China, Japan and the global banking cartels are never going to allow that to happen. That's the joy of an intertwined global economy. Greece is tiny and everyone scrambled to get them afloat. What ould happen if the USA fell apart economically?

    Most of the USA's wealth is based on real estate, but sure, dumping the dollar would stop cheap borrowing, but what happens if it is replaced by the Yuan? It hurts China's economy because the Yuan would be so strong that exports and manufacturing would be too expensive.

    It will never be the Euro because pockets of Europe will always be on the verge of collapse and complete economic turmoil.

    Can't be oil or gold because current economies are rigged to operate on manipulated fiat currency.

    Everyone else is too small.

    The dollar as reserve currency isn't going anywhere anytime soon, so don't hold your breath.
     
  25. macrumors 68000

    Happybunny

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    #25
    This is going to go terribly wrong for France and François Hollande, he has been warned by other leaders in the EU and by the ECB. They have told him and France that they should cut government spending by at least 18% per year.
    Hollande is the last of the Old Guard of Hard Line socialists left in western Europe, he has been pledging this tax for many years that he was in opposition, and it was a main election promise.

    This is a boil that has to be lanced, it has to be shown to everybody that it will not work. Those old ideas like to subsidise for failing industries, employment laws that stifle growth, these are all ideas which went out of style in the rest of Europe in the 1970-80’s.

    Like the UK in the mid to late 70’s this is the death throws of Union power/Political power. The french socialists and Trade unions are living in the past.
     

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