Cable Forum - 75% Income Tax [France]

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Taf	29-12-2013 17:12

75% Income Tax [France]

Quote:

75% tax on salaries exceeding 1m euros (£830,000)

http://www.bbc.co.uk/news/business-25541739

Would our government try it? :dunce:

denphone

29-12-2013 17:16

re: 75% Income Tax [France]

If that ever happened then a lot of wealth would leave this country.

Chris

29-12-2013 18:04

Re: 75% Income Tax [France]

Quote:

Originally Posted by Taf (Post 35658586)

http://www.bbc.co.uk/news/business-25541739

Would our government try it? :dunce:

No.

The people who earn that sort of money are generally also the sort of people who would as easily reside in New York as in London. If you make the tax regime hostile, they flee it. The result is, you don't get to tax any of their income, and they spend less of their wealth in your economy.

High tax regimes *do* *not* *work* beyond the short term because they reduce the amount of money in the economy, thus slowing growth, thus depriving everyone else.

martyh

29-12-2013 18:05

Re: 75% Income Tax [France]

Quote:

Originally Posted by Taf (Post 35658586)

http://www.bbc.co.uk/news/business-25541739

Would our government try it? :dunce:

Only a socialist government like labour would do that and think it right to do that

Hom3r

29-12-2013 18:08

Re: 75% Income Tax [France]

Quote:

Originally Posted by denphone (Post 35658587)

If that ever happened then a lot of wealth would leave this country.

A lot of ordinary people would leave the country.

deadite66

29-12-2013 19:19

Re: 75% Income Tax [France]

Despite the rich getting richer wages for the rest of us aren't, does trickle down economics works? doesn't seem to be.

tax them i say.

Mr Angry

29-12-2013 19:20

Re: 75% Income Tax [France]

Quote:

Originally Posted by martyh (Post 35658602)

Only a socialist government like labour.....

Made my Sunday evening that did. Best laugh I've had in ages. Cheers.

TheDaddy

29-12-2013 19:31

Re: 75% Income Tax [France]

Quote:

Originally Posted by deadite66 (Post 35658612)

Despite the rich getting richer wages for the rest of us aren't, does trickle down economics works? doesn't seem to be.

tax them i say.

It trickles one way and it ain't down

Osem	29-12-2013 19:32

Re: 75% Income Tax [France]

Quote:

Originally Posted by deadite66 (Post 35658612)

Despite the rich getting richer wages for the rest of us aren't, does trickle down economics works? doesn't seem to be.

tax them i say.

It's been tried before and it doesn't work.

TheDaddy

29-12-2013 19:33

Re: 75% Income Tax [France]

Quote:

Originally Posted by Mr Angry (Post 35658613)

Made my Sunday evening that did. Best laugh I've had in ages. Cheers.

Indeed, labour haven't been socialist for a long time, Tory lite but then I'd describe the current conservative party as that to.

deadite66

29-12-2013 19:35

Re: 75% Income Tax [France]

Quote:

Originally Posted by Osem (Post 35658615)

It's been tried before and it doesn't work.

Rampant capitalism doesn't work either.

Osem	29-12-2013 19:47

Re: 75% Income Tax [France]

'Fixing' something* which you say doesn't work with something else which doesn't work doesn't seem like much of an idea to me. I reckon things are a whole lot better for the vast majority of us than they were in Harold Wilson's time which is the last time such high tax rates were levied IIRC. In fact Gordon Brown's decision to raise the highest rate of tax to 50% didn't work.

http://www.bbc.co.uk/news/business-17465733

* If we lived in a state of 'rampant capitalism' the banks would have been allowed to fail. They were not.

Damien

29-12-2013 19:55

Re: 75% Income Tax [France]

Quote:

Originally Posted by Osem (Post 35658621)

America had a pretty high rate of taxation until the late 80s. In the 60s/70s/80s it was approaching the rate France are at now. Even in the 90s they had a rate at 40% which for a country that is often considered low taxation is pretty high.

http://taxfoundation.org/article/us-...usted-brackets

Quote:

* If we lived in a state of 'rampant capitalism' the banks would have been allowed to fail. They were not.

Yes, the gains were kept and the losses are socialised.

v0id	29-12-2013 19:55

Re: 75% Income Tax [France]

We need a new world economy :D

Osem	29-12-2013 20:05

Re: 75% Income Tax [France]

Quote:

Originally Posted by Damien (Post 35658622)

At least until the time when the banks in question recover sufficient of their value that they can be sold to repay that debt.

Escapee

29-12-2013 20:46

Re: 75% Income Tax [France]

I understand that the 1970s Labour government was taxing the highest earners up to 98%.

Mr Angry

29-12-2013 22:10

Re: 75% Income Tax [France]

Quote:

Originally Posted by Damien (Post 35658622)

Yes, the gains were kept and the losses are socialised.

Exactly.

Look at what was done with the Royal Mail also. The profitable element and national property portfolio were sold off at a pittance compared to their respective actual worth and the shortfall of the pensions was socialised.

Damien

30-12-2013 07:53

Re: 75% Income Tax [France]

Quote:

Originally Posted by Osem (Post 35658624)

At least until the time when the banks in question recover sufficient of their value that they can be sold to repay that debt.

Doubt it. The 'bad debt' will be taken on by us and the rest sold for less than we paid for it. Like Royal Mail the part that is sold will be probably be sold off cheaply as well.

Pierre

30-12-2013 08:43

Re: 75% Income Tax [France]

This will probably just guarantee that the French economy will stay in the toilet.

Instead of cutting their public sector, they'll just continue to fund it by taxing more.

Eventually, the money will dry up.

Hugh	30-12-2013 10:16

Re: 75% Income Tax [France]

Actually, how it is supposed to work is (from the Times, behind a paywall)

Quote:

Under the redrafted law, approved by the court yesterday, companies will pay a 50 per cent levy on that part of all employees’ earnings which exceed €1 million (£835,000) a year.

Along with the country’s high payroll taxes, this will mean that employers will have to pay at least 75 per cent of the salary’s value to the state. The tax, which will be levied for only two years, will be capped at 5 per cent of the company’s turnover.....

...The Constitutional Council had earlier this year rejected as discriminatory the Socialist Government’s first attempt to introduce the supertax, which imposed a 75 per cent levy on incomes higher than €1 million a year. The court had noted that, under French law, taxes are calculated on household income rather than individual earnings. The Hollande law would therefore have imposed unfair treatment on those affected. ....

....The highest tax rate, paid by a tiny minority of households, remains at 60 per cent. Half of French wage-earners pay no income tax at all.

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