Here Is Who Gets Taxed To Fund The French 'Fairness Doctrine' Socialist Dream

Tyler Durden's picture

As we discussed earlier, the French budget  can be summed up as state spending will be frozen (not cut), tax and social contribution increases for households, and companies will see approximately 8% of their current after-tax profits vacuumed up by the government. But it is high-income earners that face a sharp adjustment. On the household side, SocGen notes the flagship measures will be: a new 75% income tax on incomes of €1 mln or more, the Wealth tax (ISF) band to return to the status quo ante (before Mr Sarkozy), the taxation of capital income in line with labor income, and new limits on tax breaks or the freezing of the income tax schedule (except for low income earners). The government expects income tax receipts to increase from €59bn in 2012 to €72.6bn in 2013 (+23%). Income taxes are expected to decline for the 8 lowest deciles (80% lowest incomes) and that the bulk of the income tax increases will affect the top 5% of incomes. A simple rule of thumb suggests that those latter households could experience a 40-50% increase in their income tax bills.

 

 

Source: SocGen

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Western's picture

The government does things for you, keep paying them.

 

Unless of course you don't want their benefits.... wait, that's not an option you say?

ACP's picture

So does this mean Singapore will be the most cosmopolitan mecca of wealth in the world in 10 years?

I hope their military will be able to handle the jealous rage the socialist world will be thrown into. I can see the headlines now..."Sanctions against Singapore for violation of human rights...possible invasion in the cards..."

GetZeeGold's picture

 

 

Sure I'll pay to be in your cult.....can you spot me?

 

ShortTheUS's picture

Are you implying, Tyler, that the opportunity cost of leaving France becomes less and less for wealthy supporters of the welfare state?

deki's picture

God damn these "champagne drinking socialist".

Bossuet's picture

Dieu ?

Saint Martin, n'a-t-il pas coupé son manteau en deux, pour le donner à un pauvre ?

En dehors d'une répartition des richesses totalement repensée, il n'existe pas d'autres portes de sorties.

TINA à l'envers ANIT. Hahahaha !

 

pan's picture

Coming to Murica soon, bitchez!

LMAOLORI's picture

 

 

I don't know about France but in America the ultra wealthy like warren buffoon hide their money in tax exempt foundations which is something obama never discussed so changing the tax rules here wouldn't do a thing to them it would be closing the loopholes that would. Loopholes that the average person would never be wealthy enough to use. So these tax the rich schemes only end up taxing newly created wealth and the middle class.

Buffet's Will Says - The foundation must continue to satisfy the legal requirements qualifying Warren’s gift as charitable, exempt from gift or other taxes. 

In other words, the President’s "Buffett Rule" would not tax the vast majority of Buffett’s own sheltered income, including either his unrealized capital gains, which are currently taxed at 0%, or charitable contributions, which are tax deductible.

What a scam his kids will manage and make money from all this tax exempt money forever he has set up charitable organizations with billions in them for each of them to run that pay them $90 Million a year besides his hiding wealth in gate's foundation.

 

HITlary clinton tax the rich everywhere (might as well say except well connected cronies)

http://www.cnbc.com/id/49150934/Hillary_Clinton_Raise_Taxes_on_the_Rich_Everywhere


Warren Buffett Stands to Gain from Higher Taxes on the Rich

Obviously I think we should stop the spending and the government should get out of my pocketbook but I think people should be aware of how the scam for the well connected ultra wealthy works.

 

philipat's picture

At least with DSK there would have some Bunga bunga thrown in??

b_thunder's picture

This on ly starts in France,  it will spread worldwide in a few short years.

For 40 years, the top 2% have been grabbing disproportionally large piece of the economic pie, plus bought themselves tax rates lower than the rates paid by the folks on minimum wage.  And all these gains weren't even real wealth, becasue no real wealth was crearted.  It was the direct result of predatory low rates by the Fed and governemnt borrowing in 1980s and since 2001.

And what did the top 2% did with this money?  They took these massive compounded over 40 years gains out of the productive economy and dumped it into a RE, dot-com and oil speculation. 

Norway taxes wealth, with annual 1.5% wealth tax.  In a few years entire western world will have it.

 

Non Passaran's picture

I wonder how they're going to tax my silver.
Gotta come up with a fair proposal to do that and send it to the IRS.
I want to do my part ;-)

macholatte's picture

 

And what did the top 2% did with this money? 

World's 100 Largest Yachts

http://www.superyachts.com/largest-yachts/worlds-largest-yachts-live.htm


RickC's picture

I seem to recall a US tax on yachts that ended up putting boat manfacturers out of business, cost a lot of jobs, and produced zero tax revenue.  So macholatte is advocating more of that?  Lovely.

deki's picture

You are so wrong sir...I am not a rich individual but i am against extra tax on anybody rich or poor...government spending is the problem, and not taxing enough rich people...taxing extra top 2% wont do shit for a large budget deficit that every Western nation have.

Crash N. Burn's picture

 It's not a spending problem, it is a revenue problem:

 

"Over the past 12 years, U.S. government spending has increased by a whopping 129%. Of course, by itself this number is totally meaningless. It only acquires meaning when provided with context (i.e. the inflation-rate), and more specifically, the real inflation rate......in the make-believe world of the U.S. CPI that U.S. prices have supposedly been increasing by roughly 2% per year. However in the “real world” (i.e. a place where people buy food and gasoline), prices have been increasing by roughly 8% per year.

 

Thanks to the “magic” of compound arithmetic, over that same 12-year period, prices rose by nearly 150%. Since right-wing zealots can’t operate calculators, let me help them with the math: in real dollars, U.S. government spending has been steadily falling for the past 12 years. However, we need to divide-up this spending into two categories.

On the one hand, the U.S. government has ramped-up (in real dollars) its spending for two wars, to create-and-fund the “Department of Homeland Security”, and to subsidize the $15-trillion bail-out package for Wall Street bankers. If we take away the endless, infinite $trillions which the U.S. government has wasted on funding its empire, its fascism, and its bankers, we see that the amount of money which the U.S. government is spending on people has been plummeting lower, by somewhere close to 3% per year.

For those who consider this 3% decline per year (on people) to be a relatively trivial number, let’s provide some context. The (proposed-but-never-to-be-realized) $60 billion in “spending cuts” Republicans are currently boasting about would be less than 2% of current spending."

 

Our ‘Blood-less’ Economies
kridkrid's picture

He isn't completely wrong. The top 1% have benifited disproportionately... It isn't real wealth, it's the fiat/fractional reserve Ponzi scheme that has allowed them to extract real wealth from the system. But the solution isn't to tax them... That's far too kind and completely within the context that they themselves created.

And the govt spending that you bitch about... A symptom, not the cause. Take it away and the system collapses. The system will collapse anyway, but as for today, debt based govt spending is what keeps the system alive. I don't mean to imply that this is good... It is just true.

Crash N. Burn's picture

"The top 1% have benifited disproportionately... It isn't real wealth, it's the fiat/fractional reserve Ponzi scheme that has allowed them to extract real wealth from the system."

 

 Indeed, and what do they do with the wealth they extract?

 

" First we have the global economy, which totals somewhere in the area of $65 trillion in size. Then we have the bankers’ private, rigged casino – which they call “the derivatives market”.

Its size? Somewhere in excess of twenty times the size of the global economy. We’re not sure exactly how much in excess of twenty times that size, because the bankers have become defensive about their obscene mountain of crooked bets – and so they drastically changed how the size of their casino was “defined”.

Let me repeat this basic fact, since it is one to which the Average Joe is obviously totally oblivious. The total amount of bets on the global economy exceed the total size of the global economy by a factor of more than twenty. Put another way, more than 90% of all the “capital” in capitalism is now devoted to gambling on the global economy, while less than 10% is devoted to fueling the global economy."

The Tortoise and the Hare


darteaus's picture

Au contraire!

Targeting the rich creates an enemy for the politician to focus the proletariat on as the politician turns up the speed of the assembly line and cuts the food rations.

 

Boeing Boy's picture

wealth taxes are coming, for sure.  in norway you are taxed on your global wealth, ouch.

Crash N. Burn's picture

Taxing "wealth" instead of "income" is the most benign form of tax (and why we don't have it).

 

""The two forms of taxation which harm economies and oppress the Little People are “income taxation” and “consumption taxation”. The benign form of taxation which treats everyone equally is wealth taxation. Again I can envision readers scratching their heads. “Wait a second,” they object, “All of the taxes in our society are income taxes or consumption taxes – and there is no wealth taxation.” Exactly."

 

The Great Western Revenue Crisis, Part II

 

The biggest freeloaders in western economies are at the TOP.  The tax system was designed to take from poor, middle class, and small businesses and redistribute the wealth to big business and the 1%ers through the use of tax breaks only they (have the wealth) to qualify for.

 

Income tax theft- Billionaire versus Joe Six Pack

Nels's picture

Exactly how benign is taxing the wealth folks put aside to fund their retirement?  There's not enough wealth out there to fund the industrialized worlds debts, certainly not after confiscation of all investment income drops the market bid to zero.

There's no freedom without private property, only the right to work until you die.  Unless, of course, you have an inflation protected government pension.

Crash N. Burn's picture

Exactly how benign is taxing the wealth folks put aside to fund their retirement?

 

"With a fair tax system, everyone can be taxed at the same rate. It is also a perfect opportunity to test the integrity of the wealthy. There can be no possible objection to a flat, wealth tax. Should such a proposal be advanced – and meet the much more vehement protests of the very wealthy – this would prove what average citizens have suspected all along. Specifically, the wealthy have never been interested in “fair taxation”, but rather all they want to do is rob all the wealth of society for themselves."

 

The Solution to Sovereign Insolvency, Part III: Taxation Salvation

 

 Currently they inflate to steal folks purchasing power from their retirement funds. Dollar values may increase but the purchasing power of the fiat is dying. Here's a table showing the decline in purchasing power of fiat (versus silver) from 2001 to 2010.

 

Paid by silver, by gold or by fiat - a historical comparison

 

Agree there is no freedom without private property but if I don't pay property taxes every year, suddenly my property is no longer private, is it?

StandardDeviant's picture

"No possible objection"?  How about, "It's not yours, you thieves!"

By what right does any gang of armed thugs, whether they call themselves a "government" or a "gang" or a "mafia", get off thinking that they can take part of what you have worked to create and save, just because?

At least the gangsters don't pretend that what they're doing is right, or try to convince people that they have a moral obligation to "contribute".

Observer's picture

The right earned by providing the secure environment for them to be able to enjoy their wealth in peace. Is that not fair? I am not in favour of direct taxes but I can't see any argument against a reasonable wealth tax. Wealth and property taxes levied at a reasonable rate are the most justifiable and fairest form of taxation

LMAOLORI's picture

 

 

Did you see the Federal workers want a raise - a RAISE and they already make more then the private sector who are damn lucky to even have a job. That shit has to stop!!!!!!!!!!!!!!!!

FEDERAL WORKERS WANT PAY RAISE IN OBAMA'S SECOND TERM

As for countries like Sweden they are now running out of other people's money as I understand it they stopped allowing immigrant's free schooling and are paying their own young to go to Norway.

Sweden pays jobless youth to move to Norway

http://www.telegraph.co.uk/news/worldnews/europe/sweden/9645959/Sweden-p...

and about the U.N. another organization that should be kicked out of the U.S.

UN Urges Countries To Impose Global Taxes, Raise $400 Billion

http://www.huffingtonpost.com/2012/07/05/un-global-tax_n_1651759.html

The tax list

snip

Also the UN places the same estimated value on the proposed currency tax ($40 billion), and  roughly the same thing on its proposed financial tax ($15 billion to $75  billion).

And another idea is to borrow the lines of credit allocated to rich countries themselves at the  International Monetary Fund, and  “leverage” them to create new investment  funds for the world’s poor. How to do this while preserving those credit lines  as a reserve asset that rich countries could draw on when required, the report  admits, remains to be seen.

Then the UN also wants to charge  royalties on undersea minerals more than 100 miles offshore, within what are  called “exclusive economic zones” — in effect, inside some country’s sovereign  economic territory.

The sensitive issue here is that the world’s current “exclusive economic  zones” extend 200 miles offshore — meaning that the U.N. is suggesting that it  collect royalties on mineral wealth on half the “exclusive” territory, which it  refers to in the report as part of the “global commons.”

For most nations, excluding the U.S., those 200 mile zones were established  by the U.N.-sponsored Law of the Sea Treaty, known as LOST, which came into  force in 1994 after it was signed and ratified by 162 countries. (The U.S.  signed but has not ratified LOST; its 200-mile “exclusive economic zone” was  established by presidential decree.)

The new, 100-mile royalty proposal in the U.N.’s financing report would  require a new agreement to hand over proceeds from half of that territory to the  U.N.-sponsored International Seabed Authority.  Fox News

 

Peterus's picture

In a few years entire western world will be in shock and readjustment after corporatist economy falls down. Hopefully we'll see reinstating capitalism... but more likely war or new totalitarian era. And this is not some plot by "the top 2%", but by guys with guns (government) and their cronies (some of them billioners, but even public school teacher, by no means rich person is still an accessory in this crime). Taxing wealth, taxing everything into oblivion will change nothing. Even if you make current rich poor and guys that do the "making" become new rich, the course of crony economy is still straight for the cliff.

Offthebeach's picture

As a sleezeball ex- Arkansas lawyer once said, "It depends on what is, is."
The saps, suckers can write from the first word of the tax code and the strong can not only avoid but profit. Large taxes keep the rich rich, preventing new young rich. Large taxes centralized wealth and power making access and profitability easier. It's better to steal, harvest, pilfer at the wholesale level then go door to door for spare change. The rich should love big gov. Big gov elites love riches. It's a natural marriage.

RickyBobby's picture

"Large taxes keep the rich rich, preventing new young rich. Large taxes centralized wealth and power making access and profitability easier. It's better to steal, harvest, pilfer at the wholesale level then go door to door for spare change. The rich should love big gov. Big gov elites love riches. It's a natural marriage."

This is exactly the case and well said. Stealing at the wholesale level is so much more civilized!

overmedicatedundersexed's picture

yes lets keep pouring private wealth into the gov's of the world..gov's with so many conflicted and captured agendas

that the money is oops its gone, tax more and oops its gone. if many who want higher taxes here would just stop and understand:

this is the system that makes the 1% richer every year thru corrupt pols ..even idiots would not keep doing this

but

we

keep seeing the socialists demand more and more be poured into the bucket shot full of holes.. 

 

Dane17's picture

All these "rich" taxes do is keep us hard working small business owners from breaking into the upper levels of wealth by locking in people's economic standing.

Its an economic feudal system designed to keep the serfs from revolting and also making sure the lowly "artisan" or "merchant class" never has a chance of upward mobility while the ruling elite could give two shits about the tax rate.

Bear's picture

This in addition to the 1.5% tax on wealth, plus a substantial VAT ... I will continue to complain about the US taxes, but we are far better off than France

Monedas's picture

Let's cut to the chase .... George Soros can make all the money .... pay all the taxes .... and we all live like retired French bureaucrats on the French Riviera in modest but comfortable pensions .... lunch is served .... salad and pasta, half a roasted chicken and half a litre of wine on a red and white checkered tablecloth ?

tmosley's picture

Who pays?  The people who are leaving?

No, just the people who are left.

malikai's picture

I don't know who pays, but what I do know is that this is great news for London real estate.

philipat's picture

Actually, Singapore already has the highest propoertion of Millionaires anywhere in the world. And is clean, efficient, hard-working and safe with the best International airport in the world, unclogged streets, a superb highway infrastructure and a clean modern air-conditioned pan-island subway system It's a fantastic place to live (As folks like Jim Rogers have discovered) and it works.

 

So, yes, it will be next on the paraiah shit list. I expect the IRS will start the ball rolling?

OpenThePodBayDoorHAL's picture

Yah yah Singapore is great. Easy to do when you're entire nation is an island about 15 miles on a side, and you've got the world's largest military as a friend who keeps the waterways open for you.

i-dog's picture

Singapore is a stifling straight jacket ... but it is quite capable of keeping its own waterways open. (Who the fuck is trying to close them? Neither Singapore, nor Indonesia, nor Malaysia is trying to close them. Cheeses, you dumb fucking sheep are incredibly dumb!)

j0nx's picture

I hope you seriously don't believe what you just wrote.

i-dog's picture

I've lived in Singapore. You obviously haven't.

philipat's picture

I lived there for over two years and loved it. I now live in Bali because I prefer to live on the beach but still visit monthly andstill own an Apartment there, which turned out to be the best investment I ever made. What's your problem? You still believe the US is "The land of the free" perhaps?

i-dog's picture

I still maintain an office there and have a great deal of respect for the Singaporean people, but I've had more than one run-in with the government over their crony capitalist policies (won a couple; lost one which cost me dearly, after they directed Straits Times editorials against me personally...they're a bunch of crooked cunts, just like they are now in the US). Singapore is the blueprint for crony capitalism and heavy state control of thought.

Why would you assume I'm American, or in the US? LOL.

philipat's picture

Ah, now I see with the benefit of disclosure of the real reason. Neither I nor any of my close associates ever had any such problems in Singapore. In fact, we received great support from the Government and received generous tax holidays for manufacturing investments and Regional operations.

Of course, you can get into trouble anywhere.

darteaus's picture

It' already on the list - see the responses below.

UGrev's picture

Wait wait..wait..

The government expects income tax receipts to increase from €59bn in 2012 to €72.6bn in 2013 (+23%)"

let me get this straight. The French gov't just jacked the tax to 75% for those making >1MM EU and they expect revenue from that?  You want to know what I expect? NASA photo's showing blue streaks forming an exit pattern from France to .. well.. anyplace BUT France. 

What fucking delusion mind.. oh hang on a sec. This is EXACTLY what they wanted. To get rid of them so that all that remains are sheep. No, I take that back.. they're too stupid to come up with that concept. They really expect people to stay and pay. HAHAHAAHHHAHHAAHAHAHAHAHAHAHAHAAHAHAHAHAHAAHAHAHAHAHAHH!!!!

BooMushroom's picture

Population of France in 2011 was ~65 million. We can expect the top 2% to leave soon. Wonder which country will find itself with an extra 1.3 million rich frogs?

StandardDeviant's picture

England.  London, to be precise.  David Cameron's already rolling out the red carpet.

But never fear: Mr. Hollande's government believes that patriotism will keep them at home.  Um, yes, bonne chance pour ça.

seek's picture

Yes, I was going to say "good luck with that" to the expected revenue increase. I'm guessing they've never heard of Laffer.

Even if they institute capital controls, a goodly sized portion of their 2% might decide it's not worth working so hard for that 25% they get to keep. Every income curve, no matter the segment, be it top 10% or 1%, is always heavily volume loaded at the bottom -- those folks are more likely to be working, and more likely to give up.

UGrev's picture

The only way they stop the exodus is to make it illegal to leave.. 

darteaus's picture

Maybe they can build a wall?