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 - 09:51 | 2583443 surf0766
surf0766's picture

EU austerity. Increase taxes and increase spending = Growth

Tue, 07/03/2012 - 09:52 | 2583446 cossack55
cossack55's picture

Did you mean "cancerous Growth"?

Tue, 07/03/2012 - 09:53 | 2583450 surf0766
surf0766's picture

Yes, but I didn't need to know I had to spell it out.

Tue, 07/03/2012 - 09:55 | 2583461 cossack55
cossack55's picture

Not normally, but I'm sure this will bring MDB into the fray and he is a little slow on the uptake.

Tue, 07/03/2012 - 10:25 | 2583618 superbroker1
superbroker1's picture

Cant wait!

Tue, 07/03/2012 - 09:52 | 2583445 LawsofPhysics
LawsofPhysics's picture

45% - So now the French will pay what I pay?  Fuck me, I have been living in the wrong country all along.

Tue, 07/03/2012 - 09:54 | 2583451 cossack55
cossack55's picture

Uh, Duh!!!  A country full of French women (who speak great French) and you've just now figured it out. Merde'.

Tue, 07/03/2012 - 09:59 | 2583485 AUD
AUD's picture

And you'll get your fry frenched.

Tue, 07/03/2012 - 10:02 | 2583500 Nothing To See Here
Nothing To See Here's picture

Don't worry, now that the GOP got rid of that crazy uncle Ron Paul who wanted to shrink down the federal government, Mitt Romney will come down to save the day by doing what Obama is doing, only it won't be those pesky democrats.

Tue, 07/03/2012 - 10:27 | 2583626 Bicycle Repairman
Bicycle Repairman's picture

Romney will raise taxes and fees all over the place like he did in MA.  Only then will your typical Republican realize that Romney shouldn't even be in the Republican party.

Tue, 07/03/2012 - 10:33 | 2583669 Nothing To See Here
Nothing To See Here's picture

"Only then will your typical Republican realize that Romney shouldn't even be in the Republican party."

One would think they would have figured that out already after what happened to them with the Bushes.

Stop dreaming, it only helps them. The GOP base is just as zombified as those Obama supporters.

Tue, 07/03/2012 - 10:51 | 2583780 PivotalTrades
PivotalTrades's picture

Didnt even see your post

Tue, 07/03/2012 - 13:51 | 2584578 Bob Sacamano
Bob Sacamano's picture

"Conservative" is not equal to "Republican" 

If a football field were the political spectrum, Obama and Romney would be one yard apart......that is the problem.

Tue, 07/03/2012 - 10:47 | 2583761 PivotalTrades
PivotalTrades's picture

We already had the the non republican Bushs both Georges were only social conservatives. Not true shrink the Gov Repubs

Tue, 07/03/2012 - 17:59 | 2583786 Bicycle Repairman
Bicycle Repairman's picture

The Bushes were not Republicans, either.  But Romney will be "in your face" obvious.  The Bushes gave us Souter and Roberts.  Can't wait for Romney's first SC appointment.

Tue, 07/03/2012 - 10:52 | 2583790 LawsofPhysics
LawsofPhysics's picture

correct.  One party, by the banks and financial houses, for the banks and financial houses.

 

How about we have another unfunded war or two?  Yeah, that will fix it.

Tue, 07/03/2012 - 10:28 | 2583636 GMadScientist
GMadScientist's picture

Hmmmm...tough choice...do I go with 'stupid' or 'stupid on roids'.

Tue, 07/03/2012 - 09:54 | 2583453 MachoMan
MachoMan's picture

Yeah, but we still have nascar

Tue, 07/03/2012 - 11:20 | 2583539 Agent P
Agent P's picture

I've seen Talladega Nights...the French are coming!

Tue, 07/03/2012 - 10:34 | 2583673 falak pema
falak pema's picture

direct taxation is low in france, more like 15% on gross revenues.

Tue, 07/03/2012 - 12:03 | 2584156 TBT or not TBT
TBT or not TBT's picture

45% - So now the French will pay what I pay?

- did you know the French already pay over 20% "VAT", which looks like a 20% sales tax to the end consumer?   

- Were you aware that income taxes aren't the only taxes in France, not by a long shot?   There is more than a page of tax line items between the top and bottom lines of a pay slip in France, and none of those include the income tax, which in France is not paid in bits each pay period but all at once, via a separate process, as a result of filing their income tax forms.

On top of that you have a, for lack of better term, regulatory tax.   Because of the giant spaghetti of cost-raising mandates and rules about how things must be done or can't be done, everything you might want to consume over there is a lot more expensive, or nearly everything.

Tue, 07/03/2012 - 09:53 | 2583447 The trend is yo...
The trend is your friend's picture

Did anyone else just hear the Vacuum cleaner just turn on

Tue, 07/03/2012 - 09:59 | 2583483 MachoMan
MachoMan's picture

It's really kind of strange...  if printing at any plausibly sane level can't fill the debt hole, then how will confiscation?  I'd hope that people realize the debts are so large that confiscation can't pay them...  and, even if the practice is successful, it will ensure capital flight for a few generations.  This is pure and total capitulation...  desperation.  Especially considering budgetary contraints have yet to be fruitfully implemented.

Retribution is awesome and all, but retribution is only moral when it pinpoints wrongdoers...  unfortunately, the mob is inherently inaccurate.

Tue, 07/03/2012 - 09:53 | 2583448 Strut
Strut's picture

Oh Noes! The poor job creators...

Tue, 07/03/2012 - 10:08 | 2583528 MachoMan
MachoMan's picture

The problem with confiscation is that in doing so, you must then take over the role.  The problem, of course, is that we can say that they provide no value to society, while at the same time we are incapable of creating any viable jobs ourselves...  In other words, the government is going to piss the spoils away just the same...  and, net of nets, J6P (jean-pierre plonk, in this case) is no better...

Tue, 07/03/2012 - 10:38 | 2583710 azzhatter
azzhatter's picture

If a man works hard and smart and earns a lot of money, why are people who don't work entitled to any of his money?

Now if the man is a banker or other crook, he should just be executed but taxation is thievery- no more, no less

Tue, 07/03/2012 - 09:54 | 2583452 Turin Turambar
Turin Turambar's picture

I guess it's time for Johnny Depp to return to the US if he hasn't already.  LOL

Tue, 07/03/2012 - 13:15 | 2584410 smiler03
smiler03's picture

Excellent point. There's another one.... Roman Polanski 

Also now that Wimbledon is in progress, try finding a single decent French player who does NOT use Switzerland for residential purposes. 

Tue, 07/03/2012 - 09:54 | 2583456 CreativeDestructor
CreativeDestructor's picture

chi ching

Tue, 07/03/2012 - 09:54 | 2583457 firstdivision
firstdivision's picture

This will be awesome.  I need to pick up some popcorn.

Tue, 07/03/2012 - 10:09 | 2583534 fuu
fuu's picture

With the way you go through the stuff do you buy futures?

Tue, 07/03/2012 - 09:55 | 2583458 Bob
Bob's picture

FRANCE TO TAX CAPITAL INCOME AT SAME LEVEL AS WAGES

Uh oh.  Now they think they can legislate "fairness." 

When are working fucks gonna understand that life ain't fair!

Tue, 07/03/2012 - 10:11 | 2583543 CrashisOptimistic
CrashisOptimistic's picture

You do realize this is capital gains they are talking about?  If you can't make money on capital gains because it's taxed away, then you don't invest.  This will mean no capital formation and no new business formation.  Forever.

Then all the jobs will be in government, and all its funding will come from taxing the government employees.  The shortfall will be borrowed and no problem, except that this will be forever, and with no remaining millionaires, maybe government salaries will have to go up to create some.

Tue, 07/03/2012 - 10:15 | 2583562 tmosley
tmosley's picture

First good analysis I have ever seen out of you, I think.

Tue, 07/03/2012 - 10:23 | 2583612 prole
prole's picture

Except he is totally wrong. "All funding will come from taxing the government employees"

Government employees don't pay tax, they can't because all that they have is tax money to begin with.

I believe their plan is to endlessly plunder the saps and sheep, or "the private sector" as they have always done

I do grant his idea some merit, only if you openly declare such "private sector" government agencies as Monsatan, Blackwater, war companies, 'private' jail companies WTF? etc as government agencies, then his idea will be true.

Tue, 07/03/2012 - 10:44 | 2583668 MachoMan
MachoMan's picture

How can you endlessly plunder people with finite wealth or finite tolerance combined with mobility?  This policy is so desperate because it has such a limited lifespan...  not unexpected (I suspect many of these measures will hit our shores soon enough, USA), but still goofy.

Tue, 07/03/2012 - 12:06 | 2584173 TBT or not TBT
TBT or not TBT's picture

Don't worry, as part of the EU and euro break up France will be obligated to nationalize a lot of their industry, and so the state will have income that is not tax.      The state is all, will be all, can be all.

Tue, 07/03/2012 - 10:25 | 2583614 Bob
Bob's picture

And, likewise, if you can't make money on work because it's taxed away, you don't work?

Hey, if the return isn't sufficient, don't invest.  I'm sure that'll work for investors. 

But as for eliminating new business formation, I don't see capital gains taxes being the limiting factor, except perhaps to mega-corp businesses looking to IPO. 

But is that sector really where innovation takes place?  Or is it more a mechanism for rent-seeking?

Tue, 07/03/2012 - 10:36 | 2583689 MachoMan
MachoMan's picture

Taxes and confiscations don't exist in a vacuum.  Where you have a developed bureaucracy that's complex enough to get to this point, you also have a bureaucracy that dictates a great many facets of every business...  new business formation was likely curbed by these policies long ago...  leading to larger debts/deficits as the idiots at the wheel misdiagnosed the problem (at best).  Now we're to the stage of confiscation to make up for all those lies (promises) along the way. 

Tue, 07/03/2012 - 10:54 | 2583796 Bob
Bob's picture

Sure, deck chairs.  It'll be interesting to see how the post-apocalypse world organizes . . . though I fear we'll be looking at a more brutal regime controlled by the usual suspects in nifty new costumes. 

Tue, 07/03/2012 - 12:08 | 2584181 TBT or not TBT
TBT or not TBT's picture

This activity is worse than "Deck chairs"    It's like the crew of a sinking destroyer rolling depth charges down the stairs, and turning deck guns on the lifeboats.

Tue, 07/03/2012 - 10:26 | 2583622 tarsubil
tarsubil's picture

Perpetual motion government. Unstoppable!

Tue, 07/03/2012 - 12:37 | 2584280 A Nanny Moose
A Nanny Moose's picture

There is nothing more permanent than a Temporary Government program.

Tue, 07/03/2012 - 10:29 | 2583639 Whoa Dammit
Whoa Dammit's picture

If "investments" in companies were used for capital expansion, I would have to agree with you. But when was the last time you saw any real capital formation in a "first world" country?

Capital gains tax exemptions used to be about capital formation. Now its just about exempting stock value increases and dividends from taxes. While keeping real wealth concentrated in the hands of a few people.

And the money raised from those stock investments is rarely used to actually grow real capital in the corpoations' host countries, instead it is used to buy out and gut companies, to overpay executives, and to offshore jobs.

 

Tue, 07/03/2012 - 10:44 | 2583728 MachoMan
MachoMan's picture

It's primarily used as a mechanism to prop up nominal values of assets...  this is necessary to appease the voting public, even if its share of the pie is less than the money changers who have front run the savior and nestled themselves where they know backstops will be afforded.

This is also why price discovery is impossible...  if monetary prolifigacy wasn't enough, the regulatory environment is too volatile for much comfort...

Tue, 07/03/2012 - 10:31 | 2583647 falak pema
falak pema's picture

its true for small business, not true for transnationals. As France has a weak small business network unlike Germany, it will just mean a lot of small french entrepreneurs will move to UK. But as the transnationals who pull the french economy, (there are a lot of big french companies), based on their export performance will still be strong, and as they only pay around 8% corporate tax, capital gains tax will not have a big effect on their activity. Most of these companies have 60% of foreign ownership anyway. I don't know what the new capital gains tax does for foreign shareholders! Any way, everybody knows that taxes have to go up in first world. Our capital formation is totally screwed up until the financial sector purge occurs. As this will take time, its good to tax all corporates and sundry in the meantime. They have never been so rich for so little productive effort! Its skin off a nose that does nothing but speculate, its not skin worth saving.

Tue, 07/03/2012 - 11:49 | 2584092 Lebensphilosoph
Lebensphilosoph's picture

Any way, everybody knows that taxes have to go up in first world.

 

... as it becomes third world.

Tue, 07/03/2012 - 12:15 | 2584205 falak pema
falak pema's picture

it already is debt wise.

Tue, 07/03/2012 - 14:29 | 2584755 DosZap
DosZap's picture

Congrats you total idiot................

Who in the hell is going to stay in France and be raped, of they are even remotely wealthy?.They have been buying homes all over the EU to escape your MORONIC tax scam.

Good luck when the Muslims take over Parliment.

Tue, 07/03/2012 - 09:55 | 2583460 Tony Rumjog
Tony Rumjog's picture

Does my EBT card work in Paris?

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