+DieChecker Posted December 30, 2013 #1 Share Posted December 30, 2013 http://www.abc.net.au/news/2013-12-30/france-approves-75-per-cent-tax-on-high-incomes/5177916 A controversial French tax to be levied on companies that pay salaries of more than 1 million euros ($1.55 million) a year has been approved. I am interested in this to see if companies and high income individuals will actually leave France, or if they will submit. Reportedly the French professional football (soccer in the USA) players are very angry about this tax. 3 Link to comment Share on other sites More sharing options...
libstaK Posted December 30, 2013 #2 Share Posted December 30, 2013 (edited) 75% is straight up gouging - the French government should have settled for somewhere around 35% with zero concession access for high income earners aka: you pay 35% regardless of what you do with the money be it charity/investment etc. The 75% just provides a disincentive for bothering to making a living in France in any way, shape or form. I thought the real point with high income earners is that they are prevented from dodging paying a tax bill through various loop holes - that is what will put money back where it belongs closing the loopholes, not gouging effort. Edited December 30, 2013 by libstaK 1 Link to comment Share on other sites More sharing options...
Wickian Posted December 30, 2013 #3 Share Posted December 30, 2013 Damn, I would ask for a dock in pay if I qualified for that. 2 Link to comment Share on other sites More sharing options...
Vaise Posted December 30, 2013 #4 Share Posted December 30, 2013 One thing i have never fully understood since i started paying tax, was why do you pay more the more you earn? We all use the same services that tax pays for regardless of income. SO why do you pay more into those services than any one else if you earn more. It almost seems like a punishment for succeeding in securing a good living. Just my opinion on the matter 3 Link to comment Share on other sites More sharing options...
SHaYap Posted December 30, 2013 #5 Share Posted December 30, 2013 the mistresses are going high end with couture and gems ... Link to comment Share on other sites More sharing options...
toast Posted December 30, 2013 #6 Share Posted December 30, 2013 One thing i have never fully understood since i started paying tax, was why do you pay more the more you earn? We all use the same services that tax pays for regardless of income. SO why do you pay more into those services than any one else if you earn more. It almost seems like a punishment for succeeding in securing a good living. Just my opinion on the matter Your system will not work. From a financial point of view, a country is like a company with earnings and expenses. The countries fiscal budget covers current costs and future investments for example in infrastructure, education, defense, agencies, science, research and others. To keep the level a capital amount of, let’s say, 1000/year is needed. If it is 1100/year, the level can be developed. If it is 900/year, curtailing on the above sections are the result. If the tax amount is leveled to amount X per taxpayer to earn the 1000/year some people may smile but the majority will cry (poem!) as there are lot of people who must pay their entire income for taxes so they must request for welfare, a capital that is generated by taxes. In addition, with your system an increase of tax income can only be generated by enhancement of the population which again will raise the demands. Also there will be a huge class of population with no money to spend, means zero spending capacity. This will crack the markets and increase prices to inflationary levels. Your idea may work to create Mogadishu 2.0 or North Korea 2.0 in your country, but not to keep an advanced civilization alive. 1 Link to comment Share on other sites More sharing options...
Vaise Posted December 30, 2013 #7 Share Posted December 30, 2013 Your system will not work. From a financial point of view, a country is like a company with earnings and expenses. The countries fiscal budget covers current costs and future investments for example in infrastructure, education, defense, agencies, science, research and others. To keep the level a capital amount of, let’s say, 1000/year is needed. If it is 1100/year, the level can be developed. If it is 900/year, curtailing on the above sections are the result. If the tax amount is leveled to amount X per taxpayer to earn the 1000/year some people may smile but the majority will cry (poem!) as there are lot of people who must pay their entire income for taxes so they must request for welfare, a capital that is generated by taxes. In addition, with your system an increase of tax income can only be generated by enhancement of the population which again will raise the demands. Also there will be a huge class of population with no money to spend, means zero spending capacity. This will crack the markets and increase prices to inflationary levels. Your idea may work to create Mogadishu 2.0 or North Korea 2.0 in your country, but not to keep an advanced civilization alive. Id like to clarify it was not an idea it was an opinion coupled with a question. I understand your answer and it explains allot how the system works and how governments make there money. I do however feel taking 75% of someone's earnings cause they earn million + just seems rather unfair. I will never in my lifetime even come close to earning 1 million at all but the fought of having to give 750 thousand of it away because some government said so would really annoy and infuriate me. 75% just seems very high even for high end earners. Also i have no intention of making a north Korea 2.0 so i have no idea where or why you decided to play that one.... 1 Link to comment Share on other sites More sharing options...
stevewinn Posted December 30, 2013 #8 Share Posted December 30, 2013 (edited) Hollande wont last long. the French are in trouble in Mali, the French army is struggling, they have asked the EU to take over the mission. so far only Poland have shown an interest in getting involved. if they do join France in Mali then with two EU members being involved it will lead to the EU taking over the mission. and we'll all be off on a jolly into Africa. and now this Tax, the writing is on the wall for Mr Francois Hollande. The most important point of this tax, is that its not paid by the individual, its interesting to see they are making the employer pay the extra tax, not the employee. so how will big multinationals respond, we all know these companies are built on shifting sand. will they simply move out of France? or just funnel their finances through another country by registering in a different country. like we have seen with Amazon.co.uk. who are registered in Luxembourg so avoid paying the correct amount of tax here in the UK. Edited December 30, 2013 by stevewinn Link to comment Share on other sites More sharing options...
toast Posted December 30, 2013 #9 Share Posted December 30, 2013 (edited) Id like to clarify it was not an idea it was an opinion coupled with a question. I understand your answer and it explains allot how the system works and how governments make there money. I do however feel taking 75% of someone's earnings cause they earn million + just seems rather unfair. I will never in my lifetime even come close to earning 1 million at all but the fought of having to give 750 thousand of it away because some government said so would really annoy and infuriate me. 75% just seems very high even for high end earners. Also i have no intention of making a north Korea 2.0 so i have no idea where or why you decided to play that one.... You are right, 75% is just robbery and will not lead to higher gouvernment tax income on the long run as a lot of ppl with an income for that amount will take actions and transfer their company HQ to "sexy" countries like Irland (12,5% tax flat) or Switzerland or others like the blue chips like Apple, McDonalds, Mercedes Benz and a lot of others. Please dont´t take the NK issue personal, I just used that just to expalin a scenario. Peace. Edited December 30, 2013 by toast 1 Link to comment Share on other sites More sharing options...
Vaise Posted December 30, 2013 #10 Share Posted December 30, 2013 You are right, 75% is just robbery and will not lead to higher gouvernment tax income on the long run as a lot of ppl with an income for that amount will take actions and transfer their company HQ to "sexy" countries like Irland (12,5% tax flat) or Switzerland or others. Please dont´t take the NK issue personal, I just used that just to expalin a scenario. Peace. Nothing personal Taken, thank you for your explanation and enlightening me to taxation. Link to comment Share on other sites More sharing options...
toast Posted December 30, 2013 #11 Share Posted December 30, 2013 Nothing personal Taken, thank you for your explanation and enlightening me to taxation. I forgot the most important point: taxiation sucks! 1 Link to comment Share on other sites More sharing options...
itsnotoutthere Posted December 30, 2013 #12 Share Posted December 30, 2013 (edited) One thing i have never fully understood since i started paying tax, was why do you pay more the more you earn? We all use the same services that tax pays for regardless of income. SO why do you pay more into those services than any one else if you earn more. It almost seems like a punishment for succeeding in securing a good living. Just my opinion on the matter Yes, I've never seen the logic in this. You're basically being penalized for being successful & all about the politics of envy, read the comments section in the Guardian, you see a lot of it there. Edited December 30, 2013 by itsnotoutthere 1 Link to comment Share on other sites More sharing options...
Wickian Posted December 30, 2013 #13 Share Posted December 30, 2013 The government wants it's money. To get it they have to make smaller tax increases to everyone, or large ones to the rich. Reducing spending elsewhere is never an option. 2 Link to comment Share on other sites More sharing options...
+DieChecker Posted December 30, 2013 Author #14 Share Posted December 30, 2013 One thing i have never fully understood since i started paying tax, was why do you pay more the more you earn? We all use the same services that tax pays for regardless of income. SO why do you pay more into those services than any one else if you earn more. It almost seems like a punishment for succeeding in securing a good living. Just my opinion on the matter Yes, I've never seen the logic in this. You're basically being penalized for being successful & all about the politics of envy, read the comments section in the Guardian, you see a lot of it there. Yeah, itsnotoutthere pretty much nailed it. It is all about politics, as the actual revenue increase is probably low single digits. If you have 66% of the voters saying something is unfair, then the politicians will aim that way. 1 Link to comment Share on other sites More sharing options...
+and-then Posted December 31, 2013 #15 Share Posted December 31, 2013 http://www.abc.net.a...incomes/5177916 I am interested in this to see if companies and high income individuals will actually leave France, or if they will submit. Reportedly the French professional football (soccer in the USA) players are very angry about this tax. Maybe they will slip the finance minister a "quenelle" As for the tax, outrageous and I'll be surprised if their isn't an overall decrease in tax revenue behind this little brain storm. Link to comment Share on other sites More sharing options...
+DieChecker Posted December 31, 2013 Author #16 Share Posted December 31, 2013 As for the tax, outrageous and I'll be surprised if their isn't an overall decrease in tax revenue behind this little brain storm. That is really what I am interested to see. The maybe 5 year results to the French economy versus the French Tax Income levels. Link to comment Share on other sites More sharing options...
White Unicorn Posted December 31, 2013 #17 Share Posted December 31, 2013 Id like to clarify it was not an idea it was an opinion coupled with a question. I understand your answer and it explains allot how the system works and how governments make there money. I do however feel taking 75% of someone's earnings cause they earn million + just seems rather unfair. I will never in my lifetime even come close to earning 1 million at all but the fought of having to give 750 thousand of it away because some government said so would really annoy and infuriate me. 75% just seems very high even for high end earners. Also i have no intention of making a north Korea 2.0 so i have no idea where or why you decided to play that one.... In the US back when I was making good money before Reagan days. I can't remember exactly the brackets since they change so many times but I was paying fed around 45%, state 9% not counting local, Real Estate and sales. Person just starting job making less then me, had a higher net and was on assistance with food stamps LOL. You learn quickly after you get hit, there are many ways around it when you get educated about the tax laws. I think they know people like CEOs or other high earners learn quickly to do shelters such as 401k , IRa's, insurance, tax free investments and many other tax loopholes to the MAX allowed in each area so they can be taxed on a low net income. The money is still there growing earnings for them or family members but not really included as taxable earnings . 1 Link to comment Share on other sites More sharing options...
Mr.United_Nations Posted December 31, 2013 #18 Share Posted December 31, 2013 Dont know why the French players association are protesting, they earn heck loads of money Link to comment Share on other sites More sharing options...
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