Cheese eating surrender monkeys give up on massive taxing of the rich

Stupid Cheese Eating Surrender Monkeys they even surrendered on taxing the rich massively hard.

Of course they had to surrender on the socialist utopia of taking the rich because simply put massive taxes on the rich simply don’t work.

François Hollande’s unpopular tax changes that imposed a 75% rate on earnings above €1m (£780,000) will quietly disappear into the history books from Thursday.

The French socialist president announced plans for the controversial measure during his 2012 election campaign as a means of forcing the wealthiest to help dig the country out of economic crisis.

Although supported by the left, the reform sparked accusations of an anti-business agenda. After the “supertax” was announced in September 2012 the government was accused of shooting itself in the foot by risking an exodus of high-profile personalities. Business leaders expressed fears that investors would pull out of France.

France’s richest man, Bernard Arnault, the chief executive of luxury group LVMH, took out Belgian nationality, and the actor Gérard Depardieu also moved across the border to Belgium before obtaining Russian citizenship.  

High-earning French footballers threatened strike action, while league bosses warned they would no longer be able to attract world class players.

A majority of French taxpayers disapproved of the 75% rate, although polls showed that six out of 10 voters were in favour of raising income taxes on the wealthy.

Despite the backlash Hollande clung to the principle of the supertax even after it was dismissed by the country’s highest court, fearing a revolt by his leftwing allies. The tax was subsequently adjusted to a 50% rate payable by companies after the constitutional council ruling in December 2012.

The final nail in the coffin came from the former investment banker who is now France’s economy minister, Emmanuel Macron. A former economic adviser to Hollande, Macron described the supertax as “Cuba without the sun”.

With the party leftwingers having marched out of government in the days and months following the appointment of the openly pro-business Manuel Valls as prime minister last March, it was only a matter of time before the tax was dropped. The prime minister confirmed it would not be renewed in 2015 during a visit to London in October, where he addressed business leaders.

“The reform clearly damaged France’s reputation and competitiveness,” said Jorg Stegemann, the head of the executive search firm Kennedy Executive. “It clearly has become harder to attract international senior managers to come to France than it was.”

As if we needed more evidence of the failure of socialism…France provides us with it daily.

 

– The Guardian

 


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  • Dave

    a long article, but here we are, source below. Virtual choc fish to anyone who can explain this to a socialist…….

    Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.

    If they paid their bill the way we pay our taxes, it would go something like this:

    The first four men (the poorest) would pay nothing.
    The fifth would pay $1.
    The sixth would pay $3.
    The seventh would pay $7.
    The eighth would pay $12.
    The ninth would pay $18.
    The tenth man (the richest) would pay $59.

    So, that’s what they decided to do.

    The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. ‘Since you are all such good customers,’ he said, ‘I’m going to reduce the cost of your daily beers by $20. Drinks for the ten now cost just $80.’

    The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected.
    They would still drink for free. But what about the other six men – the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’ They realized that $20 divided by six is $3.33.

    But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

    And so:

    The fifth man, like the first four, now paid nothing (100% savings).
    The sixth now paid $2 instead of $3 (33%savings).
    The seventh now pay $5 instead of $7 (28%savings).
    The eighth now paid $9 instead of $12 (25% savings).
    The ninth now paid $14 instead of $18 (22% savings).
    The tenth now paid $49 instead of $59 (16% savings).

    Each of the six was better off than before and the first four continued to drink for free, but once outside the restaurant, the men began to compare their savings. “I only got a dollar out of the $20,” declared the sixth man.

    He pointed to the tenth man, “but he got $10!” “Yeah, that’s right,”exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got TEN times more than I!”

    “That’s true!!” shouted the seventh man. “Why should he get $10 back when I got only two? The wealthy get all the breaks!”

    “Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!”

    The nine men surrounded the tenth and beat him up.

    The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him.

    But when it came time to pay the bill, they discovered something very important….they didn’t have enough money between all of them for even half of the bill!

    And that, boys and girls,JOURNALISTS and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

    https://danieljmitchell.wordpress.com/2012/03/18/the-tax-system-explained-in-beer/

    Now, do 9 of you fancy coming out for a beer tonight ?

    • johcar

      Only if I’m one of the first 4… :)

      Seriously though. it scares me that I am (supposedly) in the top 5% of income earners in NZ – but I don’t have a fancy new car, or a boat, or a bach, or annual overseas holidays. I don’t FEEL like a rich prick…

      But I DO have a roof over my head, a regular income, stable family life (no kids doing drugs or in jail!), awesome friends, and a very good lifestyle.

      And access to a blog many of whose commenters reflect many of my personal values.

      Maybe I should count my blessings and not worry about the w*****s with their conspicuous consumption…

      • 1951

        I think the factor there in your ‘questioning’ (which is…yet, how come being in the top 5% I still don’t have…fancy car/bach/boat….?) is “KIDS”!!
        It is not until they start to get onto the full-time income ladder do they stop draining your supplies. It takes a lifetime but don’t give-up hope. By the time you have enough for the Fancy Car, Bach & Boat they have saddled themselves with mortgages so much so, they then come round to make they get your monies-worth out of your dream things. Oh the ironies of life ;)

        • johcar

          Looking forward to it!! :D

      • Rick H

        I’m happy with my life.
        No debts, mortgage almost gone, 1 or 2 years it will be.
        Still have pop-top camper, for nice weekends away – (1/2 hour drive) and a wine or two after each hard-working day.
        Go for a ride on my MTB most evenings – when the weather suits.

        Sure, look at photos of mansions, luxury yachts, $1000.00 per night hotels.
        What ever. – never be in a position to do that, so why even bother thinking of it?

        Travel the world on Google-Earth – and enjoy the scenery and views on street view.

        Rather be where I am relaxed, happy and in good health.

        (Edited to add a zero in the hotel bill)

  • xennex

    At this point there’s pretty good agreement between economists that the stimulus approach (US) to the great recession has worked better than the austerity approach (Europe). Extreme taxes don’t help (remember Muldoon’s highest tax rate?).
    The Economist has some good articles on this. http://www.economist.com/news/schools-brief/21586802-fourth-our-series-articles-financial-crisis-looks-surge-public
    BTW if you’re going to attack France then attack the legislation which supports the unions. It’s just nuts there; a job is for life, so many workers go out of their way to let you know just how unhappy their are with their job and lives and how little you can do about it. It’s still a great country though.

    • cows4me

      If stimulus is the way to go xennex why don’t we just keep borrowing and spending ? It may work for a while but it’s just kicking the can down the road.

      • onelaw4all

        I liken it (and Keynesian orthodoxy) to peeing against a wall in the deepest winter.
        Yes, you get the occasional warm feeling on your leg from the splashback, but not what you would consider a sound strategy for personal heating.

      • Disinfectant

        An interesting case study for stimulus would be that of Australia’s when during the height of GFC, the Labor Government gave everyone a cash hand out. This got rid of their huge surplus.
        Did it keep their economy humming along. Probably did for a while, but maybe now they are having the recession which would otherwise have come earlier, and at less cost to Australians at the time.
        Interesting observation is that when Australia is booming we are not, and when we are booming Australia is not.

    • David

      The problem with Europe is the single currency. Greece for one should have its currency worth a lot less and Germany currency should be higher.Get rid of the single currency and Europe would work a lot better.

    • onelaw4all

      Sorry, have to disagree with their analysis, if that is the case, for several reasons.

      Firstly, as far as I know, no European countries are practicing “austerity” (reducing government expenditure from gigantic to excessive doesn’t count)

      Secondly, as far the approach that the U.S. has taken stimulus wise, and its effects to date, it has had the same detrimental effect on their economy (and has received the same revisionist incorrect analyses as did their efforts during the Great Depression.
      To this point, the U.S labor participation rate is the lowest it has been since the 2nd worst president was in power, the late 70s.

  • Tom

    “described the supertax as “Cuba without the sun”.”

    Gotta be quote of the week!

  • Sir Cullen’s Sidekick

    Well the Commies and the socialists of this country still keep talking about rich paying their fair amount of tax….

    • I_See_Crazy_People

      No, the Commies and socialists of this country still keep talking about the rich paying EVERYONE’s amount of tax.

    • Kopua Cowboy

      I’ve always laughed at how they misuse the word “fair”.

  • andrewo

    Arthur Laffer: Alive and well!

  • peterwn

    The 21st Arrondissment is less than a 2 1/2 hour train ride from Paris. While a different experience from the Metro, it at least has a Metro type experience in the middle. Little wonder French people tended to migrate to the 21st Arrondissment (also known as London) from the other 20 to avoid punitive taxes.

  • The Accountant

    I love high taxes, it gives me plenty of work! Seriously, I see first hand that tax payers quibble less, and exercise less energy “avoiding” taxes when they are reasonable. It’s confirmed with increased tax takeep when rates fall.

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