France is going to have a top tax rate of 75%... that kind of sucks, working to keep 25% of your pay.
France also has, get this, a wealth tax of up to 1.8% of your entire wealth.
So, let's look at something. Suppose you have a wealthy gentleman, worth $300 million. Let's also assume that this gentleman currently earns $10 million per year.
We'll assume, for sake of argument, that income under the $1.2 million per year isn't taxed at all. That leaves $8.8 million to be taxed at 75%.
Mr. Wealthy man is only left with $2.2 million. Well, that's still good, right?
Nope. Now he pays his wealth tax. It's progressive, but at $300 million that comes out to $5.3 million per year.
So now, Mr. Wealthy man, who has $300 million and made $10 million this year, has a tax bill for $3.1 million dollars.
He loses $3.1 million dollars for the year... who in their right mind thinks that this is right, and expects him to stay in the country while his wealth is whittled away?
The rise of socialism and communism! Now, THEY will live like THE REST OF US!
Rise? Do you know much about france?
It is a socialist state, far as I know it has been since the lower classes beheaded all the french toffs. Wealthy in france is a dirty word, being wealthy is like having VD, not something you brag about.
wealth ≠ hard work in the minds of everyone you know.
So long as those who leave france because they don't want to pay it's taxes are NOT allowed to make one single cent within france, I don't see a problem. If you want to earn and profit off a country you have to follow it's rules, wining about it doesn't help with the perception of wealthy people being greedy.
Frankly, you might be right, a number of rich people MIGHT leave france, chances are they will be replaced. The guy who sees taxes have cost $3.1 million dollars for the year and doesn't like it can leave, chances are someone else will come along and be mighty tempted by the after taxes earning of $7.9 million. I know I would!
Take your $3.1 million mister french tax man! I will enjoy swimming in $7.9 million just as much as I would have $10 million, but then again, I am not greedy
No, you don't understand.
He didn't end up with $6.9 million after taxes.
After taxes, they would take ALL of his income, and he would still have a bill for $3.1 million.
In other words, the country is charging him a 131% tax rate. He has to pay the country for the priviledge of working for no money.
Do you still think that is a good plan?
Do you think someone will take his place, and work for the priviledge of paying millions to the government?
Now you didn't state anything like that to be fair
First you say that he is paying 75% in taxes, then you say he is paying 131%, which is it?
I did, I explained that he had to pay income taxes, which reduced his income to $2.2 million, and then pay another $5.3 million tax on top of that. Net effect is a negative.
My math was actually a bit off because of the $1.2 that we discarded. Benefit of the doubt, he still owes $1.9 million.
75% tax on income.
Tax on wealth up to 1.8%. The wealth tax comes out to be 56% of his income, for a total of 131%.
Do you think that tax plan makes sense? A person who makes $10 million pays $13 million in taxes?
To be honest, they way you have presented the math is not making sense to me, I am wondering if you understand what france is proposing (which means I should go check it out myself before I say much more really)
Thing about online discussions, so easy to get confused and muddy waters that might have been clear otherwise
Ok, let me try to be more clear.
The tax rate is 75% for the most wealthy.
If you make $10 million, you pay $7.5 million into taxes.
You are left with $2.5 million.
That takes care of income tax, but there is also a wealth tax. If you have $300 million in wealth, your wealth tax would be $5.3 million.
So you pay the $5.3 million, where does that put you?
You have lost $2.8 million dollars. Your income of $10 million? Gone, and then some.
http://www.youtube.com/watch?feature=en … 9zwvJFCq_I
Will Smith on taxes.
He said he's willing to pay whatever it takes.
When told about the 75% tax rate he said '75? 75? Well, that's different. God bless America'
Well mostly I am finding news articles that don't go into the math at all but if the way you are explaining it is indeed how it is going to pan out then, many wealthy people will leave france. Maybe they will come here to the UK and pay into our tax system
As for how it will leave france, only time can tell really. It is their country and their choice at the end of the day. The mistrust of wealth and the wealthy is deep in french society. Can you blame them after looking into their history?
It looks like many are already leaving or preparing to.
In today's age, I can blame them. I'm sorry, but things that were true in the past aren't necessarily true today. To create laws out of fear that will only harm you is nothing but irrational.
My guess would be that anybody with wealth over 10-20 million euros won't stay... it's too much of a tax.
Could you imagine being retired, and having the government take away 1.5% of your wealth every year?
If you had $100 million and no income, you would pay some $17 million in taxes in a decade, for no reason other than you have money.
While your basic premise is correct, you are leaving out the fact that there is a considerable base amount that is not taxed, plus a multitude of exemptions.
I'm not passing judgment on whether or not France's proposed (has it actually been adopted?) tax policy is a good one or not, as I don't know all of the details. However, if that is what the people want, then the uber-wealthy will have to decide whether or not they want to live there, and the people will have to live with the consequences of their choices.
Well that is quite something! We're living in a time where $1 million is not a particularly large sum of money - this tax rate is going to be a disaster for the middle-class in France. Investment opportunities are going to be slim, and that means fewer jobs, and so begins the road to serfdom. They will need a bail-out next, and you won't be able to blame it on rich people.
by dnrkrishnan256 years ago
If you won 10 million dollars, what would you do?
by Stacie L5 years ago
WASHINGTON (AP) — President Barack Obama is expected to seek a new base tax rate for the wealthy to ensure that millionaires pay at least at the same percentage as middle income taxpayers.A White House official...
by Edwin Clark6 months ago
Instead of giving US corporations bailout/loans the government should give each of its citizens $1,000,000 to spend on anything they want within the United States.According to the US Census there are 305 million...
by Tony Lawrence5 years ago
Is nobody going to call Peter Schiff on his "I pay 50% tax" crap?Recently, Peter Schiff marched into OWS and confronted demonstrators, claiming that he pays 50% of his income to taxes. Unfortunately, the...
by GA Anderson11 months ago
Much is heard of a demand that corporations and the wealthy pay their "fair share" of taxes, but I have heard little of what that share should be.With only a single restriction; that the discussion is about...
by Harvey Stelman5 years ago
Our President keeps putting down people that make a lot of money and have corporate jets.Please excuse me sir. 1- Didn't you make millions of dollars in the last few years?2- Isn't Air Force One strictly for you, not to...
Copyright © 2016 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.