Taxing the rich is not a common debate here in the United States but also in France. The French, socialist presidential candidate, Francois Hollande proposed last week a 75% tax rate on income above 1 million euros. People have debated that this increase in the tax rates will cause French citizens to move to other European countries that offer lower rates. His reason for the high tax rate is that it is "patriotic to agree to pay a supplementary tax to get the country back on its feet." A recent survey shows that majority of French citizens agree with this tax rate. The people that it would upset the most are French "football players" who are very wealthy and they are upset because it would "end in catastrophe for French football."
In the article it links this situation to the presidential debate for this year in the US, Obama's argument that the rich should pay higher taxes. However, in the United States the top two tax rates are 33% and 35% and Obama wants them to go back to pre-2001 rates of 36% and 39.6%. Which these rates are very small compared to French presidential candidate's 75%.
7 comments:
I do think that a 75% tax rate would be extremely high, but it is interesting to me that they are this concerned and making a big deal about the soccer players in France. It seems as though the status of the country is by no means of importance because the bigger issue to Frédéric Thiriez and spectators is that it would end a catastrophe to French soccer. Don’t get me wrong, I love sports and enjoy watching them, but it amazes me that there is so much talk about this soccer issue and how they would just leave the country. There are definitely other possible solutions to the eurozone debt crisis, but they shouldn’t rely on this potential “soccer catastrophe” to come to a conclusion. France should do what is best for the country, which would entail the most beneficial and efficient solution to the eurozone debt crisis.
The coming presidential election in France will then be a very interesting one since Nicolas Sarkozy, the current president, is very much pro-American in term of his economic promises (low tax, pro-market). The result will be an indicator of the social trend in France on equality.
Regarding the soccer catastrophe, these soccer players for earn over 1 million/year account for a very low number of the population (less than 0.1%) with much less political influence than the other group. Thus, they should be rather a negligible force. Besides, a few year ago, Britain increased the tax rate for the highest income group and the same phenomenon occurs. However, the country is still able to attract many talents oversea as of now.
The coming presidential election in France will then be a very interesting one since Nicolas Sarkozy, the current president, is very much pro-American in term of his economic promises (low tax, pro-market). The result will be an indicator of the social trend in France on equality.
Regarding the soccer catastrophe, these soccer players for earn over 1 million/year account for a very low number of the population (less than 0.1%) with much less political influence than the other group. Thus, they should be rather a negligible force. Besides, a few year ago, Britain increased the tax rate for the highest income group and the same phenomenon occurs. However, the country is still able to attract many talents oversea as of now.
I agree with Thang. Although an increase in tax rate for the rich can provide incentives for the rich to move out of the country to places that do not tax people that much, it will still not stop those who are looking for opportunities that the taxing country provides.
I agree with Lauren, 75% is way too high. There would be no incentive for individuals to earn that much or if they did it may cause an increase in the illegal methods to hide part of their earnings from being taxed. I also can see both sides to the France's soccer issue. Yes they do make up a small percentage of the population and it is interesting that they are a large part of the debate. However, soccer is much more important in France than in the U.S.. We spend a significant amount of money and time on sporting events and we as well make a big deal when there is a risk of no season.
I feel shocked about the 75% of tax rate for people who earn more than 1 million Euros in France. The reason for it is “patriotic” is even more surprised me. If people love their country, shouldn’t the country love its people back? I hope there will some other policies that could solve the current economic problems existing in France. Moreover, for a long term, such a high tax rate will force (rich) people to leave the country. The government, alternatively, might want the rich to put their money in the country through investing in the country.
I feel shocked about the 75% of tax rate for people who earn more than 1 million Euros in France. The reason for it is “patriotic” is even more surprised me. If people love their country, shouldn’t the country love its people back? I hope there will some other policies that could solve the current economic problems existing in France. Moreover, for a long term, such a high tax rate will force (rich) people to leave the country. The government, alternatively, might want the rich to put their money in the country through investing in the country.
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