Rich tax forces U.K. millionaires to flee the country; French next?
Back in 2010, our friends in the U.K. hiked its top national tax rate, sending it all the way up to 50 per cent.
Immediately, the rich seemed to panic, choosing to flee the ship rather than go down with it. According to the Telegraph newspaper, since the new tax on the wealthy was brought in, 63 per cent of the U.K.’s millionaires – those with incomes of more than £1 million ($1.6 million) – have left the country.
That’s about 10,000 people, a tax-fleeing bunch that, on the scale of the entire 62 million U.K. population, may not register.
But what, it’s worth asking, may happen in France, when next year the country will institute a top tax rate so savage it still does not seem real?
Come 2013, France will introduce one of the most controversial non-war governmental decisions in recent memory: a rich tax of 75 per cent at the highest level, tops in the world.
*Bing: The world’s highest taxes on the rich
The tax, of course, is to help debt-soaked France bring in more national revenue, though perhaps even the most ardent “Occupy Wall Street” backer might concede this is too much.
Under the new tax rate – currently, the top tax rate in France is just 40 per cent – those earning over one million euros ($1.28 million) will be dinged 75 per cent in tax. Paying your share is one thing, but imagine you earn $1.28 million each year and only take home $320,000. How’d you like that?
Like has happened in the U.K., an “exodus” among the wealthiest French appears to be under way.
Already, the rich are stirring. As of last month, 400 million-dollar homes had been put on the market in Paris alone in response to the pending tax boost.
New French president François Hollande has not bristled at the criticism over his planned tax, insisting the increase will help turn his country’s economy around.
Yet the great migration of wealthy French won’t just mean fewer Rolls-Royces and Lamborghinis zipping around the Parisian streets.
After the U.K. raised its top tax rate to 50 per cent, British millionaires left the country, yes, but the nation actually lost money because of it.
The plan was to raise national revenue. Instead, due to fleeing millionaires who took their tax dollars with them, the U.K. has lost $11.1 billion in tax revenue, and was forced to scale back its top tax rate to 45 per cent, beginning next April.
How sustainable will France’s super-rich tax be, then? For a look, perhaps we only need to peak across the English Channel to see.
By Jason Buckland, MSN Money
Posted by: SP | Nov 28, 2021 6:18:46 PM
Nice "protect the rich" Hysteria article that misses the vast floods of money coming into the UK buying up property in London even today.
We hear about rich people escaping these horrible high tax countries that provided them with their wealth (Think of a certain Mr. McAfee who's "enjoying" his low tax location at the moment....) We never hear how they almost all come crawling back with their tails between their legs.
I'm sorry but anyone who thinks life is going to be better outside the G7 hasn't had a chance to actually experience it.
If the wealthy in our societies actually want to enjoy their wealth they have to contribute back into the society that provided it for them. Failing that they'll be living life like the US president, Behind bullet proof glass, riding in a armored car with friends vetted and frisked by security guards all the time thinking about the rich rewards returned to Muammar Gaddafi by his beloved citizens.
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Sorry Jay... If you want a functioning society the rich have to pay
PS the top rate was over 90% in America for quite a few years.... Just something to think about.
Posted by: garrett | Nov 30, 2021 12:22:46 AM
and the bit about paying 3/4 of everything you earn seems a little intellectually dishonest. I assume the french have tax brackets as do we.
Posted by: Forest | Nov 30, 2021 3:28:53 AM
Something tells me that 75% rate isn't on the full 1 million.... That wouldn't work because you'd just scale back your profits to sub 1mil and earn loads more money!
Posted by: maverick | Nov 30, 2021 7:37:00 AM
Seeing that they(the 1.5%) caused this economic climate, they should pay for the damage caused. Who needs 400 million dollar homes anyways? Maybe they (1.5%) should go live in Afghanistan or somewhere like that.
Posted by: Troy Jollimore | Nov 30, 2021 8:41:38 AM
*Sigh*
@maverick: That was 400x 1 million dollar homes up for sale...
@SP: Jason wasn't writing a 'protect the rich' article. It highlights just how ineffectual the governments are at trying to get money from those that SHOULD be investing back into the economy, as you say. The ultra-rich can just flaunt the laws and go where they please, leaving those poorer than themselves to take up the slack.
To the rich, we might as well not even exist.
Posted by: Claude | Nov 30, 2021 10:10:55 AM
It's Easy, the rich will always be rich, and the poor will always be poor.
Posted by: VN | Dec 1, 2021 11:55:14 PM
I really question the type of research has Mr Buckland conduncted prior to writing this article.
It is obvious to any reader that 75% tax would be on the in the income exceeding €1 million per person not on the total income. And this by the way on the earned salary income, which excludes income earned from capital (capital gains,dividends, etc)
Please see http://www.kpmg.com/global/en/issuesandinsights/articlespublications/taxnewsflash/pages/france-proposed-corporate-individual-tax-changes-for-2013.aspx
The other point regarding the 400 homes valued over million dollars on sale in Paris for the month of October. This is Paris we are talking about, a city of over 10 million people. 1 million dollars is only 770,000 Euros that is roughly the price of an avg 2 bedroom apartment not to close to the city center. How many of similar priced dwellings were on sale in October of last year?
Posted by: Ed | Dec 3, 2021 12:08:34 AM
Stick to those who invest, create jobs, pay taxes is the socialist way. Do it till all is lost. Such is the mentally of most of the population who do not understand economics.
Hating the rich and complaining is an sport for you hard heads.
Posted by: Eric Brewster | Dec 4, 2021 9:04:38 AM
(****Laughs uproariously at Jason Buckland's editorial) SP your exactly right there.....I doubt if Jason Buckland has ever seen what goes on at Nova Scotia financial institutions?! The Regulations are a joke and no Fraudster Brokers have ever been successfully prosecuted in Nova Scotia or most of Atlantic Canada. Those that have been touched have been fired from their investment firms but never have been dealt with by the RCMP or our own supposed Canadian Investment Watchdog agencies. Ahhhh but Jason Buckland, WEALTHY PEOPLES of France and Britain WILL FLEE TO CANADA thanks to the Stephen Harper Government and the special favors that Prime Minister Stephen Harper doles out to them. I have little faith in people like Bob Rae and Justin Trudeau, I certainly won't waste the time voting for Justin Trudeau in the next Feddy Canadian Election because Stephen Harper will win another one by simply doing nothing but courting people like Kevin O'Leary and we will be cursed to watch more episodes of "Dragon Den".
Posted by: Eric Brewster | Dec 4, 2021 9:21:11 AM
Hello VN, I completely agree with you; Jason Buckland apparently like most financial "Consultants" and economists is himself caught buried deep in the forest trying to climb a tree to see out from the Forest. Sadly those involved in the financial industry are just as greedy as many others whom are the ones that are supposed to be the "leaders of the financial industry and commerce" but are entrenched in as much corruption as anyone else. Tell me VN now can you regulate those that have multimillions invested in offshiore banking establishments that cannot be completely tracked then the buggers and financial whoremongers whom sit on such CBC Television programs like "Dragons Den" tell the people that appear on there that they should take their hardearned savings and ideas and give them over to the 10 pannelists on TDD, it is amazing how many that do actually give over their ideas to the Dragon Denzidens, loosing their dreams and their desire to dream, right now I have a completed prototype 6inone boardgame that I worked 5yrs on that I cannot take to a computer graphics company anywhere around that if I don't have "X-Mega Millions" such companies won't look at me sideways, My game is called "Earth And Space Wars" but it does not matter the CEOs are deaf to the little inventor and games maker, if you are not in their game you don't exist to them.
Posted by: Eric Brewster | Dec 4, 2021 9:30:50 AM
VN, indeed Paris is Paris as Halifax, Nova Scotia, Canada is Halifax; here and in the Annapolis Valley most "townhouse-condoes" cost between $75,000 to a cool $250,000 each, such is the housing market. It is a Landlording market of the rich for the rich, medium and smaller landlords are finding such an economy stressful to say the least in providing their tenants the basics in homecare. What is worse our recession economy is fueling lowincome Canadians across the country into an Rental VS Housebuying situation because of the greed of Housing Market that has overflowed the industry with high to superhigh-housing prices ever since about 1990 thereby causing our housing crisis.
Posted by: fed up at taxes | Jan 2, 2022 9:11:37 AM
the harder you squeeze that lump of sh!t, the more of it oozes out from between your fingers, the solution is not to tax the rich, but to reduce, welfare, pass laws such as, if you are on welfare, you are not to have more children, if you get pregnant while on welfare, choose an abortion, or termination of benefits, force them to clean the streets, force them to go to school, visit their homes unannounced, if you smell cigarette smoke, drugs or they are drunk, or have empty liquor bottles, cut back their benefits. don't give them a sweeter deal than those that pay to go to school, if an immigrant doesn't have a job, or commits a crime, any crime, then deport them. cut spending on the stupid and the ridiculous things, i am not rich, the only way that people like me to avoid taxes is through the underground economy. trade this for that, work for cash, or exchange one skill for another, under the table, of course.