75% Tax, Have They Learn Nothing From Britain In The 60S?

[ToraToraTora]

http://www.bbc.co.uk/news/business-25541739
This sort of thing generally cuts tax receipts, even Noo Laybor have grasped that!

[emmie]

hilarious, wait for the influx of well off French men and women, this is Hollande's doing, it;s what he said he would do, surprised that they think this will work.

[emmie]

it took a long time for some in our political system to grasp that the higher the tax, squeeze them till the pips squeak just doesn't work, as been proven when we had high tax rate of 98 percent for those high earners, didn't they take off and head for the hills.

[Gromit]

The super rich haven't always enjoyed such friendly rates in the UK.

// The highest rate of income tax peaked in the Second World War at 99.25%. (churchill) It was then slightly reduced and was around 90% through the 1950s and 60s (Attlee, Eden, McMillan, Douglas Home,Wilson).

In 1971 the top rate of income tax on earned income was cut to 75% (Heath). A surcharge of 15% kept the top rate on investment income at 90%. In 1974 the cut was partly reversed and the top rate on earned income was raised to 83%. With the investment income surcharge this raised the top rate on investment income to 98% (Wilson). //

It was under Thatcher and Blair that the super rich were more favouably taxed. The other great Conservative leaders since the war were quite happy to super tax the super rich.

[emmie]

its stupid politicians who do it, whatever the divide, and Hollande did this to appease his dwindling supporters, he is a socialist is he not?

[emmie]

the super rich usually had decent accountants to squirrel away the money, unless they owned a stately home, that was death to most tax wise.

[emmie]

whether one wants to admit it, the very wealthy don't always abscond from their tax duties, and do generate business, so income for UK

[FredPuli43]

This is vote catching, no less. Notice that President Hollande has it as a temporary measure. If he does that, he won't cause an exodus of wealthy taxpayers but will be popular with the public , who see the measure as desirable.

Since Hollande has the lowest approval ratings of any President of recent memory, he has to try stunts like this.

[Gromit]

Gérard Depardieu has already bogged off to Russia.

Ray Winstone keeps promising to leave here. Perhaps we could bump our rate up to 80% until he goes?

[FredPuli43]

Depardieu is an actor and a prima donna at that. There's no sign of France's richest men and women upping sticks as he affected to do (did he actually go and stay there? He was going to Belgium originally, and I don't think he ever did that. Perhaps Belgium wasn't a suitably theatrical choice)

[emmie]

not a stunt, Hollande promised he would get this done on taking up office, some on here suggested that it wouldn't pass, now it seems it will,
as to Depardieu as a prima donna, i think not, he has made films in France for many years, so one assumes that he has paid taxes and his dues, he left or so he says on the advent of Hollandes promise of taxing the very wealthy at the rate set down. He has been an asset to France, like him or not, and one Minister called him a traitor or some such nonsense, not a patriot, that was stupid. We have seen the same in Britain, excessive tax rates and not just for the wealthy but for all, taxes on just about everything that moves or doesn't. Hollande is unpopular and this isn't going to go well with many.

[youngmafbog]

What these lefties dont seem to grip is that the super rich have methods of getting out of it and if the rate gets too high it becomes worthwhile spending money on flash accountants and swiss bank accounts.

Typical tax of envy from the left.

[emmie]

it is, and quite honestly they don't see it. Better for the likes of Depardieu to pay his fair share, fair being the operative word, than paying nothing, as is the case as he has moved, if it was a fit of pique, well so what, i am sure that others will follow.

[emmie]

and it doesn't just apply to the super rich, that is the point.

[FredPuli43]

emmie, the fact remains that the 10 richest people in France: Bernard Arnault ($39 billion), Liliian Bettencourt ($24 billion),Francois Pinault ($13 billion),J-C Decaux ($4.9 billion), down to the 'poorest' at $3.7 billion have not left. M. Arnault said he was leaving for Belgium, but changed his mind.

The measure is still temporary. Anyone who earns more than a million euros (£830,000) a year, is hardly going to shift themselves and their income out of France anyway unless the measure is likely not to be. Footballers were mentioned in the link ; it is surprising that only ten footballers at PSG qualify; but they are under contract and the compensation for breaking that is quite likely to be more than the tax saved. It is not as though people pay no tax above that 1 million euros; this new rate is the new high rate.

You have a more generous impression of Gerard Depardieu than I have ! He is indeed France's most famous actor, a French Olivier, but that doesn't mean he doesn't act like a prima donna.

[FredPuli43]

Incidentally, France has a standing tax on assets, levied every fiscal year. When people say we tax everything that moves or doesn't , they might like to consider that we are fortunate in that respect.

[emmie]

i don't think he does, i have admired him as an actor for years,
he is one of the few shall we say larger than life characters France has produced, and if he went it could have been that he is not a socialist and does not wish to live under Monsieur Hollands regime, only he could tell us that of course. He was one assumes a tax payer, contributor, now he is not.
and those super super wealthy do you suppose they pay their full quota of tax?

[emmie]

i don't consider us fortunate, tax on almost everything, many are stealthy taxes, the governments like to spend our money on every conceivable nonsense, how many times in your life have you had a tax rebate,
they take and take.

[FredPuli43]

The new rate will an extra 18% but effectively amounts to 75 % when social contributions are taken into account.

Present tax rates, married couple:45% over 150,000 euros. Then an extra 3% above 500, 000 euros and 4% above 1 million euros.[Source: Siddalls]

[Gromit]

Youngmafbog

// Typical tax of envy from the left. What these lefties dont seem to grip is... //

Did you miss my post earlier pointing out that Churchill, Eden, McMillan, Douglas-Home and Heath were quite happy to apply similar levels of high rate tax on the rich?

Are you really accusing Churchill of being a leftie?

[Kromovaracun]

Gromit

In modern times, higher tax rates have usually been associated with left wing politics. Right wing politicians very rarely promise to do it, and if they do there's usually extenuating circumstances.

Plus the domestic economy during the war years was mostly run by Attlee. Churchill's main policy area was the military and diplomacy.