France Gives "Fairness Doctrine" Details; Will Tax Millionaires At 75%

Tyler Durden's picture




 

With the Great June Socialist Revolution spilling over into July, here are some details as they become available from France:

  • FRANCE TO HAVE NEW TAX RATE OF 45% FOR WEALTHY
  • FRANCE TO TAX INCOME OF MORE THAN EU1 MLN AT 75%, AYRAULT SAYS
  • FRANCE TO TAX CAPITAL INCOME AT SAME LEVEL AS WAGES
  • FRANCE TO RAISE TAXES FOR LARGE COMPANIES, BANKS, OIL FIRMS

But... FRANCE TO ANNUL PLANNED VAT INCREASE PLANNED BY SARKOZY

After all, it's only fair. In other news, we are rotating our secular long thesis away from Belgian caterers and into tax offshoring advisors, now that nobody in the 1% will pay any taxes ever again.

The good news is that with the entire world set to adopt 100%+ taxes on "wealthy" individuals as defined arbitrarily by Ph.Ds, there will be no place to hide. Which incidentally is just the first step toward what we warned back in September 2011 will happen: a 30% tax on all financial assets. Everywhere.

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Tue, 07/03/2012 - 09:49 | 2583439 kato
kato's picture

Tax rates on assets?

Tue, 07/03/2012 - 10:03 | 2583506 vast-dom
vast-dom's picture

so much for liberty. time to die a little.

Tue, 07/03/2012 - 10:06 | 2583513 Colombian Gringo
Colombian Gringo's picture

Oooo La La!. With the french millionaries running away, my favorite Pigalle girl Fifi should cost me less, No?

Tue, 07/03/2012 - 10:14 | 2583559 Stock Tips Inve...
Stock Tips Investment's picture

Hollande think those presidents of third world countries underestimate the power of the market. A powerful government can do almost anything. But that does not ensure it fulfills its objectives. Poor France.!!

Tue, 07/03/2012 - 10:23 | 2583609 Pure Evil
Pure Evil's picture

People of France should be more than willing to pony up the taxes to pay for the full litany of services provided by the state. If it wasn't for the 'state' mankind would still be draggin' knuckles and livin' in caves. Only the state can provide the resources needed by modern man to live in freedom, prosperity and peace.

(As you can see, I'm trying to channel MDB since his input is currently missing.)

Tue, 07/03/2012 - 10:28 | 2583630 FEDbuster
FEDbuster's picture

"Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people's money. It's quite a characteristic of them." Margaret Thatcher

Tue, 07/03/2012 - 10:57 | 2583809 Comay Mierda
Comay Mierda's picture

damn i wish we can take all the Obamatron welfare/disability moochers and ship em to fucking France

Tue, 07/03/2012 - 11:11 | 2583865 Precious
Precious's picture

It's miraculous how the people who are least in control of their own lives, so enthusiastically desire imposition of controls on the lives of others.

I guess it's a twisted emotional release for their inability to actually compete.

Tue, 07/03/2012 - 11:16 | 2583899 Buckaroo Banzai
Buckaroo Banzai's picture

What's French for "Galt's Gulch"?

Tue, 07/03/2012 - 11:36 | 2584018 TBT or not TBT
TBT or not TBT's picture

Ayn Rand is unheard of in France.   And mind you, most of them imagine the UK is a good example of free markets red in tooth and blood.   Really.    They 'ave zee "ultraliberalisme anglosaxon" on the tip of their tongue. 

Tue, 07/03/2012 - 12:32 | 2584261 The Big Ching-aso
The Big Ching-aso's picture

 

 

A pricier Royale with cheese is gonna get Samuel L. Jackson even more riled up.

Tue, 07/03/2012 - 12:28 | 2584248 FEDbuster
FEDbuster's picture

"What's French for "Galt's Gulch"?"

Switzerland

Tue, 07/03/2012 - 10:34 | 2583653 MillionDollarBonus_
MillionDollarBonus_'s picture

The paradigm is shifting. People are waking up and realizing that the only way to progress as a society is to divert more resources to the government. The thought of being 'entrepreneurial' and taking on 'personal responsibility' now fills people with dread. People are now seeing that a world with risks is simply intolerable, and the only compassionate way to organize society is to eliminate risks by trusting infallible political professionals with the right to redistribute wealth as they see fit. A decade ago, a 75% tax rate would have been unacceptable, but today it is welcomed, even by a large number of zerohedge readers. This is progress. The progressive revolution is unstoppable, and there's nothing whiny libertarians can do to stop it.

Tue, 07/03/2012 - 10:34 | 2583678 francis_sawyer
francis_sawyer's picture

At this rate ~ very soon, all 'government workers' will be the only millionaires left... Then who do they propose to tax?

Tue, 07/03/2012 - 10:50 | 2583775 LawsofPhysics
LawsofPhysics's picture

I'd argue that at this rate we will all be billionaires.  I mean, thanks to ZIRP there is no ral cost for capital creation, right...

 

FAIL.

Tue, 07/03/2012 - 10:56 | 2583804 FEDbuster
FEDbuster's picture

I am a Zimbabwe multi-trillionaire.

Tue, 07/03/2012 - 18:06 | 2585394 CPL
CPL's picture

I just finished rolling my change as well.  I think I'll buy a chocolate bar...how much is that you ask? 

The platry sum of 5 trillion Zim Bux. 

I understand that the new currencies are being fashioned so quickly that they've run out of presidents to put on them so they just slap a picture of whatever is handy as the currency theme.  With the AfricaAid being the face of all things North American in Africa, the limited edition Milli Vanilli Five trillion dollar notes should be very collectible to match the John Isuzu One Trillion Dollar bill.  Of course I'm just rambling now and this news of france being retarded has thus rendered me retarded...

 

 

Tue, 07/03/2012 - 11:37 | 2584027 TBT or not TBT
TBT or not TBT's picture

The printed money has mostly gone to sleep or to waste.

Tue, 07/03/2012 - 11:41 | 2584050 nodhannum
nodhannum's picture

Francis, they won't do it that way but the way they did it in the Soviet Union.  Some of the premiers and politburo members only received small salaries to show that everyone was equal.  Everything they got from booze, nookie, etc. was under the table; hence, one can live like a billionaire on next to nothing.  Simple really...the PIK program redux.

Tue, 07/03/2012 - 12:27 | 2584245 francis_sawyer
francis_sawyer's picture

We're not yet at that 'advanced' stage of thinking...

Tue, 07/03/2012 - 10:49 | 2583771 The Continental
The Continental's picture

So let's extrapolate your logic into the not so distant future:

As government expands and the private sector constinues to atrophy from ever higher taxes, regulations and sundry disincentives to growth, the effective tax rate climbs to 100%. So revenues have maximized and may even begin to decline if the private sector experiences recession. The government has now grown to maximum size and scope and is still running fiscal deficits and carrying the largest aggregate public debt in history.

When tax rates hit 100%, deficits continue higher to feed the ever growing social welfare state, and the private sector (what's left of it) stagnates or declines and with it revenues to the public treasury, what does the government do next to address the fiscal deficits and ballooning soveriegn debt? What is the long term solution?

Please be specific in your response.

Tue, 07/03/2012 - 11:01 | 2583826 MillionDollarBonus_
MillionDollarBonus_'s picture

You have shown yourself to be yet another purist libertarian. Silly purist arguments are simply not worth repsonding to. NOT EVERYTHING IS BLACK AND WHITE, some things come in SHADES OF GREY.

Tue, 07/03/2012 - 11:14 | 2583892 Precious
Precious's picture

and the kettle is black, right dumbass.

Tue, 07/03/2012 - 11:22 | 2583929 Dangertime
Dangertime's picture

Translation:

 

I am incapable of a rebuttal, therefore I will shame you and imply you are stupid.

 

 

Hey, it works for politicians, why not for trolls?

Tue, 07/03/2012 - 11:23 | 2583931 SilverIsKing
SilverIsKing's picture

Haha, spoken like a true douche bag.  Love ya though.  Keep em coming.  Your zingers keep me smiling.

Tue, 07/03/2012 - 11:52 | 2584106 The Continental
The Continental's picture

Like all socialists, you are a fraud and a lair. When faced with facts that contradict your world view, you ignore them. To deflect attention from the argument, you attack your opponent with ad hominems and pleas to emotions over logic. The majority sadly fall for your subterfuge and you continue to line your own pockets while public finance is destroyed, private finance is corrupted and the populace is fleeced behind closed doors. In the end, when the system implodes and the massive fraud and theft are exposed, and millions of lives shattered, you will run off with your ill-gotten booty while the responsible adults will be left behind to clean up your mess.

You are a cockroach. I step on thee.

Tue, 07/03/2012 - 11:36 | 2584017 Stuck on Zero
Stuck on Zero's picture

No problem.  Raise the tax rates to 200%, 300%, 500%, and more!

 

 

Tue, 07/03/2012 - 11:01 | 2583827 arkady
arkady's picture

Other than the small liberal group of readers on ZH why do you assume the 75% if welcomed?  I find it to be rather repugnant and an example of a desperate Government and a desperate people trying to make sense of the damage caused by decades of progressivism.   The Greek tragedy has been entirely eclipsed by the stupidity of the French.

Tue, 07/03/2012 - 11:43 | 2584064 Lebensphilosoph
Lebensphilosoph's picture

why do you assume the 75% if welcomed?

I don't assume it. I know it by the votes of the French voters. They wanted a Marxist and they got one.

Tue, 07/03/2012 - 11:18 | 2583897 Crash N. Burn
Crash N. Burn's picture

the only way to progress as a society is to divert more resources to the government and 

the only compassionate way to organize society is to eliminate risks by trusting infallible political professionals with the right to redistribute wealth as they see fit

Are you being facetious or are you just kinda "special"?

 

A decade ago, a 75% tax rate would have been unacceptable

It's still a stupid, useless idea. Here's why:

Our ‘Blood-less’ Economies

 

Income tax theft- Billionaire versus Joe Six Pack

 


Tue, 07/03/2012 - 13:46 | 2584547 Apostate2
Apostate2's picture

Ah, a little Marquis de Sade in training are we with a spank me sign on your milliondollarbonus bahookie. I wager this is not your only gig. Gluttons love punishment. 

Tue, 07/03/2012 - 10:23 | 2583606 tarsubil
tarsubil's picture

Something isn't right here. You shouldn't have to pay a French woman.

Tue, 07/03/2012 - 10:35 | 2583682 0z
0z's picture

Maybe shes going to leave too, as anyone with a bit of decency would. Retreat, regroup, rethink.

Tue, 07/03/2012 - 12:05 | 2584164 A Nanny Moose
A Nanny Moose's picture

But I am le tired....

Tue, 07/03/2012 - 10:11 | 2583538 beaker
beaker's picture

This is not that high of a rate if you say it fast.

Tue, 07/03/2012 - 10:12 | 2583548 HoofHearted
HoofHearted's picture

You try saying soixante-quinze fast. Cannot be done...

Tue, 07/03/2012 - 11:21 | 2583925 Grimbert
Grimbert's picture

Soixante-neuf is even more of a mouthful

Tue, 07/03/2012 - 10:24 | 2583613 Bicycle Repairman
Bicycle Repairman's picture

With the passage of Obamacare the US has taken a giant step towards European style socialism.  Obviously the US will take a giant step towards European taxation.  All kinds of increases on the well off will be proposed.  The purpose of the scary proposals will be to get the well off to line up for the least onerous tax:  VAT tax.  The VAT tax is hidden, not "progressive", and will raise the most tax. 

Particularly pleasing to many generational war junkies here is that the VAT tax will capture a percentage of retirement assets.  By percentage of retirement assets I mean exactly that.  Not a percentage of capital gains.  So it is the generational war junkies who will be bailed out by "socialism".

Tue, 07/03/2012 - 10:26 | 2583623 fnordfnordfnord
fnordfnordfnord's picture

Oh no! Now the job creators have no inventive to invest ^H^H^H^H^H loot & pillage. The end is near!

Tue, 07/03/2012 - 11:32 | 2583999 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

Oh the tyranny!  But at least it's not as bad as what they did in the USA where the top marginal tax rate stood at 90% for 20 years, then 70% for another 18 year.  Such oppression! 

Tue, 07/03/2012 - 11:43 | 2584060 TBT or not TBT
TBT or not TBT's picture

With loopholes they drove mac trucks through, whole freight trains and cargo ships.    Tax policy is about social engineering but also command and control, getting people to do what the retenu of bureaucrats working for each legislator want.

Tue, 07/03/2012 - 12:39 | 2584278 Woodyg
Woodyg's picture

Liberty to plunder? The ultra wealthy should be taxed on Wealth - not income.

And eisenhowers 93% if it's an Income tax works for me.

The ultra wealthy got their $ thru fraud and bribing our politicians anyway.

In fact Rico laws says illgotten wealth from criminals can be taken.

Or we can hang the rich - take your choice -

Hanging or taxes -

http://www.custermen.com/ItalyWW2/ILDUCE/Mussolini.htm

Tue, 07/03/2012 - 10:04 | 2583510 Jay Gould Esq.
Jay Gould Esq.'s picture

Announced with ironic Gallic timeliness -- just a bit before Bastille Day...Égalité "created" and enforced via the tax code.

Vive la France ! 

Tue, 07/03/2012 - 10:11 | 2583537 HoofHearted
HoofHearted's picture

We'll sneak this in while the Turkey-Syria thing is ongoing. Then we people stop thinking about that or about China or about taking the whole months of July and August to go down to the Riviera, they will never know what happened. He he he. We're smart. We thought of the Maginot Line and all. You cant fool the French government!!! (And if a single one of you says Marechal Petain, well...piss off!) 

Tue, 07/03/2012 - 10:35 | 2583681 zuuma
zuuma's picture

Kato...

Exactly! 

Tax on what? Income or assets? Who is a millionaire?

Is a millionaire someone who has saved a million$$ over 40 years of work? In one sense, sure.

How about a farmer with 600 tillable acres? He's a millionaire. MAkes 60 or 70 grand a year - weather permitting - but he's a "Millionaire".

Or is a millionaire someone who's annual pay totals a million (or  more)?  Maybe. Briefly.

If the high-income dude pisses it all away each year (sports star, actor, trust fund baby, lottery winner, etc), how are they taxed?

Warren Buffet pays himself a paltry, upper-middle class "salary". No wonder his secretary pays a lower income tax rate than him (he says).

Whatever the number, Buffet is a multi-multi billionaire. Unless he sells things (cap gains) or withdraws/pays himself from the pile (income) he is tax free. No wonder he's a fan of raising income taxes. He doesn't need to take an income.

The USA, so far, hasn't really gone after Assets - apart from property taxes & estate taxes - like some countries.

IIRC, the USA's total reported wage/salary income is about 2.5 Trillion. That's all of it. Shoe shine boy up to Bill Gates.

Calls to tax income to erase the defecit are just silly.

Confiscating 100% - ALL - the income of people making $250k/ year on up, might only close the defecit gap -the amount we are spending beyond revenue. That wouldn't solve the problem. Worse, it is a signal for the most productive among us to cash out, liquidate & get the hell out. Nobody works for free, least of all rich guys.

Which brings us back to assets. What is the "book value" of the usa? unmined minerals, undrilled oil. Tillable land. trust funds, everything.  Probably a huge number.  If our national debt is, say, 15 Trillion, and our national asset value is, say, 60 Trillion, one could say that, as a nation, we have a very positive net worth. Maybe someone has better numbers than these, but you get the drift.

Imagine Gates, Buffet, the Kennedys - all the super rich folks that push push push for high income taxes, suddenly get scratched for a 5% tax on all assets. They wouldn't feel the bite. That's 3 trillion/ year coming in from the actual "rich".

Then, cut income taxes across the board. Maybe an 8% flat tax. EVERYBODY PAYS. Everyone has skin in the game. Make income a good thing to do. Everyone who has an income - and now getting more of it - will wanna spend more, too. Which, ironically, will make all those rich guys' assets even more valuable.

Maybe by focusing on income instead of assets, we've been on the wrong path.

Too bad the illuminati prefer the current system of skimming the peasants' income & inflating away our savings with money printing, as their hard asset piles continue to grow.

oops! There... I just woke up. When will the power coome back on?

 

 

Tue, 07/03/2012 - 10:57 | 2583816 Stackers
Stackers's picture

France does tax assets already. Owning a home worth more than  XXX puts you in a higher tax bracket. What you describe is called a wealth tax and just like the income tax it feeds off the middle class and restritcs their ability to save, by taxing their savings. Horiible idea.

Tue, 07/03/2012 - 11:39 | 2584032 mjk0259
mjk0259's picture

But you don't need to save so much when you have guaranteed health care and pension.

Tue, 07/03/2012 - 11:55 | 2584111 TBT or not TBT
TBT or not TBT's picture

Good one!   

A generation and a half, maybe two, actually receicved their guaranteed health care and pensions.    Folks after that see their pensions and healthcare NOMINALLY being delivered but the quality is in permanent decline.  

The low cost health care is being delivered by lower quality doctors and nurses, because the state has to control costs, and does so by squeezing the state-educated suppliers.    Smart kids who would otherwise have gone into medecine don't, and foreigners who country is worse, and whose schools and values are lower than in the west, replace them in droves.   French people know full well doctors are getting screwed and pity them.

The quality of life is constantly degraded by rising crime, police tolerance of crime, and magrebins monstrous unemployable youth running about, using the word "francais" as an insult, and terrorizing womenfolk, they way they learned things should be in their home lives.   Of course, as to incomes, the list of deductions on your paycheck exceeds a full page of tiny type and is getting longer now, so you have no extra margin to move in any direction the government doesn't want you to.  

Tue, 07/03/2012 - 11:45 | 2584072 TBT or not TBT
TBT or not TBT's picture

The ISF, "impot sur les grandes fortunes" has driven lots of famous-in-France celebrities to live off shore, famously.

Tue, 07/03/2012 - 20:44 | 2585684 toncuz
toncuz's picture

Assets are the ONLY thing that should be taxed ...NEVER INCOME. Those who control the most , should pay the most.

And remember...the problem with capitalism...you eventually run out of stealing other people's LABOR.

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