Posted by Leonard Steinberg on February 28th, 2012
The rich are under seige! Across the globe, countries are turning to the rich to resolve their budget crises. Now, the Socialist favourite in France’s presidential election, Francois Hollande, has said top earners should pay 75% of their income in tax: “above 1m euros [£847,000; $1.3m], the tax rate should be 75% because it’s not possible to have that level of income,” he said. If elected, he would undo tax breaks enacted by Nicolas Sarkozy.
The gap between the Socialist candidate and Mr Sarkozy has narrowed. The two are tipped to reach the run-off on 6 May, after eliminating other rivals on 22 April.
Taxation for the rich has become a hot campaign issue across the globe, with tax advisers in neighbouring Switzerland saying that higher taxes for the wealthy in France could spark an exodus. Will these French buyers come to the USA, specifically New York?
Which country will address the tax issue of the wealthy in a smart, calculated, calm manner? It appears the USA may not be that smart on this issue when politicians only talk about raising or lowering rates without addressing the huge disparity within the wealthy when it comes to loopholes and tax breaks. A significantly lowered tax rate without loopholes would lower taxes for the majority of the wealthy’s taxes but stop many of the billionaires and their companies from paying significantly lower taxes. Maybe a campaign that identified it is very UN-AMERICAN to screw the system out of paying your fair share of taxes would be the answer, as long as the tax rates were not designed to discourage wealth and worse, encourage exodus, certainly the predicted outcome of 75% taxes in France.
Many of France’s richest celebrities already live abroad.