French 'Millionaire's Tax' Gets Constitutional Go-Ahead

French 'Millionaire's Tax' Gets Constitutional Go-Ahead

By Yann Le Guernigou | www.msn.com | Monday, December 30, 2013
Excerpts:

PARIS – “French President Francois Hollande has finally got his super tax on high incomes after the country's highest court upheld the law's latest version.

France's Constitutional Council gave the green light on Sunday to the government's controversial 'millionaire tax', to be levied on companies that pay salaries of more than 1 million euros ($1.38 million) a year.

The measure, introduced in line with a pledge by President Francois Hollande to make the rich do more to pull France out of crisis, was originally designed as a 75 percent tax to be paid by high earners on the portion of annual income exceeding 1 million euros, but the council rejected it last year, saying it was unfair. France's top administrative court later said that 66 percent was the legal maximum for individuals.

The Socialist government has since reworked the tax to levy it on companies instead, raising the ire of entrepreneurs. Under its new design, which the council found constitutional, the tax will be a 50 percent levy on the portion of wages above 1 million euros in 2013 and 2014.

Including social contributions, the rate will effectively remain about 75 percent. The tax is expected to affect about 470 companies and a dozen soccer clubs, and is forecast to raise approximately 210 million euros a year.

The Constitutional Council, a court comprising judges and former French presidents, has the power to annul laws if they are deemed to violate the constitution.

President Hollande’s 2012 supertax election pledge infuriated high earners in France and prompted actor Gerard Depardieu to flee the country. It has also alienated entrepreneurs and foreign investors, who have accused Hollande of being anti-business.

Hollande has said that the wealthy should contribute more to help to repair the country's finances, arguing that the supertax should also encourage companies to curb excessive executive pay.”

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IMO: President Hollande has the right idea in taxing the wealthy, a so-called ‘millionaire’s tax’ to help with France’s financial crisis and huge budget deficit. Through negotiations the measure was later changed to include businesses and soccer clubs, and in its altered version will still provide 210 million euros a year.

These additional funds will greatly help to reduce the country’s huge deficit and is a sound Democratic plan to have the businesses, soccer clubs, and CEOs that make obscene amounts of money, should pay something back to the country that helped make their extraordinary wealth.

American justice to the majority of citizens demands the same method of payment of greater taxes for all the years that the wealthy in America paid lower taxes than average workers and enjoyed greater subsidies, perks, incentives, and payments for alleged farming lands for which there was no farming, but the payments continue today during the republican era of austerity and ‘sequestration’ to make up for the Bush Era of gluttony, fraud, overspending, the Bush Wars, and Tax Cuts for the wealthy.

In order to get some kind of justice for Americans, we must get a total Democratic Congress that will show the foresight of creating jobs with livable wages, plus taxing wealthy citizens, businesses, and CEO’s that earn over a specified amount to pay a temporary tax until our revenue base returns to normal from the Bush Recession, the Two Bush Wars, and an economy that was in freefall when President Obama was being inaugurated.

 

Guess those who are already overpaid best be worth it now.

Don't fret they will get around it. They will just pay them below the standard and supply them with a retirement package for the rest or make use of them offshore accounts. When will government realize they work for the rich not the other way around. lol

 

of course they will. the foolish notion that stealing from the few to appease the masses has never worked, but what can we expect from the french. these are the same folks who massacred a monarchy only to install an emperor. some people never learn.

 

Yes the infatuation with the elitist class has always been man's downfall. The sooner people sop worshiping the rich assuming they will reward them the better. They are not worth worshiping. They are the problem 99.999999999999999999999999999999999999999999% of the time.

Nobody and I mean nobody is worth more than $50 an hour much less $663.46 an hour, and if they are then the minimum wage should be around $590 an hour.

All overpaying people does is create and sustain a class of artificial elitist demigods everybody becomes responsible for propping them up so they won't fall.

 

and who are you to determine what is fair compensation for others? for that matter, what business is it of government or the rest of society? it is the envy of wealth, not wealth itself, that is the problem.

 

It's not envy of anything. Nobody is worth more than $50 an hour, how they use their money to invest or whatever is totally up to them but nobody is worth $50 an hour even if people are stupid enough to meet their demands. JMHO, not making any demands or using the legislation to impose my opinion either.

Stop with the, "ooo everybody hates the rich because we are special and rich, BS". It is the rich that exploit and have no respect for the working class and the poor. If that isn't hatred what is?

 

are you listening to yourself? such hatred and envy.you have decided, after being told you are exploited, just what people should be paid. you have decided that anyone being paid more than that sum is exploiting others, yourself among them. you have decided this and decided that, all with nothing to go on but the talking point of people who really do want to exploit you.

 

And how exactly will they create jobs? Will they do it the same way Obama and the Democrats created all the jobs?

Where would we be right now if Obama hadn't created the millions of "green" jobs he promised? Imagine how bad things would be right now if Obama hadn't thrown billions of dollars at companies like Solyndra for no apparent reason other than the fact that they had contributed a few thousand to his election campaign.

Where would be be right now without the millions of jobs healthcare reform created (hundreds of thousands almost immediately) as promised by Pelosi if we would just let her pass legislation she wouldn't allow us to see? Probably right down the tubes.[/quote]
..
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Yes I reread most of my posts before I post them and I said nothing about hating the rich. I just don't see them as all that special/deserving as they view themselves to be. Nobody told me anything except you and you are obviously smittened by the rich or one yourself. Either way you need to get over it.

It's several decades of experience speaking. While some sit around blaming the government for the corruption that is plaguing our system, I accept the reality of the situation and point blame at both parties involved. The bribers and the bribees. It really is a two way street. Anybody who follows the rues and accumulates wealth I don't see as the problem, but if they are using their wealth to obtain special favor or treatment from the government in this plutocracy of ours, should not be praised or held to a different standard than any other common criminal.

I'm simply pointing out the problem. If the roof leaks and I say, "hey the roof is leaking", I don't hate the roof.

 

Well, the French Revolution featured "equality."

Get out the popcorn and watch the decline.

 

Unless he's Lebron James... or Kobe...



It seems to me, people don't like rich business men that employee millions of people.... but for some reason, most of these same people do not have issues with rich sports stars that get paid millions to dribble a ball down a court or throw footballs.

Same thing for rich entertainers....

 

This is to be expected because socialism was born by the likes of François-Noël Babeuf during the French Revolution.

While the envious neo-Jacobin riff-raff here and abroad applaud this law, French millionaires will merely pack up their bags and take their money elsewhere like Depardieu did. Now France can kiss ALL their money good-bye.

Nice job, socialists. Keep slapping yourselves in the face.

 

Vengeance for greedy neo-socialist thieves doesn't qualify as justice for Americans. Just thought you should know...

 

Well the same old argument applies, anybody with money that spends their money helps create jobs, even the welfare participants do by proxy of other people's money.

Like I said if you can convince, or blackmail somebody into giving you more than $50 an hour, it still doesn't mean you are worth more than $50 an hour, you simply found a mark who is stupid enough to support your con.

 

You can only laugh at right-wingers who insist that the rich pay all the taxes already, while at the same time insisting that they would simply avoid any new taxes imposed on them. FLAMEBAIT REMOVED

 

Would you box a heavyweight prize fighter for $50 an hour? I will pay you to watch you live by your principles.

Or how about underwater construction 300 feet down in rough dangerous cold seas?

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Nothing lamer then someone making a "I am superior I need massive tax rates imposed on others more values by the market then me.

 

Gee, just personal attacks. Not even a hint of an effort to address the actual point. Lameness comes from the fact that it is self-contradictory to claim that the wealthy pay all the taxes but would simply avoid any new taxes placed upon them. If they have such evasive tools at their disposal, why are they not using them to evade the taxes they already face? Please try to post an answer to that question. I predict utter and persistent failure.

 

They do. Called tax shelters and low yield government bonds before they started debt printing and offshore accounts. What is dumb is thinking you deserve 75% of what someone makes because you wasted all the other money you received.

But you made that goofy IQ insult first didnt you?
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They do. Called tax shelters and low yield government bonds before they started debt printing and offshore accounts. What is dumb is thinking you deserve 75% of what someone makes because you wasted all the other money you received.

But you made that goofy IQ insult first didnt you?

 

NO! That's just me.

A boxer is an interesting choice since it takes many hours to prepare for an hour long fight. In that example they are not getting paid to fight, they are getting a share of the proceeds and prize money. In other words a share. Not a salary an investment that leads to better share of the pot. Am I speaking too fast for some of you?

It is my opinion that a boxer and his crew should get paid a bulk sum, either way win or lose, and the winner and only the winner should get anything more. You want to see a good fight, eryago.

The diver, well there had better be a good incentive program attached to the job or it wouldn't be worth anybodies time. But again that isn't pay as much as it is an investment.

It's no difference with a CEO of a major corporation. They should get a salary, say $180,000 annually (based on 14 hours a day 5 days a week, way more than most executives actually work anyway, and yes there are exceptions), then they should get a reasonable share of the profits, just like any shareholder. No profits or gains, nothing back on their individual investment. Same incentive for the boxer. Work hard reach a particular goal and you are rewarded. Otherwise you get basic pay and that's it. It's all you deserve.

Movie star, basic pay, and a share of the profits. Movie makes money they make more money, movie loses money they still get their basic pay.

Rock star. Jock. Evangelical con artist. Janitor. All the same, higher profits means higher share for anybody and everybody involved. Better opportunity means higher incentive, of course at different levels of a percentage. The janitor shouldn't get the same percentage as a managerial position, but most managerial positions are way over rated and unnecessary slots that are filled by friends and family in many companies anyway (again not always the case but I have never worked anywhere where this wasn't true. In fact the last company I worked for could have easily eliminated 10 of the 78 employees positions, and actually saved money or awarded pay raises to the underpaid employees they had working for them).

Just giving some CEO $300,000,000.00 a year plus expense account, and other bennies (country club memberships, cars, planes, trips, etc... etc...), when they are driving the company into the ground, and paying employees just enough to receive welfare on the tax payers backs just doesn't make any sense what so ever. Everybody should get a basic pay, and a bonus or wage increase when the company is doing well. It's called capitalism and it should work that way for everybody involved, not just a hand full of leaches.

Companies that pay wages that make their employees a dependent of the tax payer should just file their taxes under the 1040 EZ form with no tax breaks, no incentives or no exemptions from any of their taxes. Their choice. That money should rightfully go to the kitty so the tax payers are not burdened.

 

No. It is easy to keep up with the slow witted. You don't get paid to practice. Do you become an attorney overnight or does it take years of study? Doctor? Baseball player? CEO?

Why can't they just negotiate their pay, like they do now?

Isn't higher pay the incentive? Is this all going too fast for you?

eisner did that got a billion back for the 50 he generated and you still complained.

Then you should hire people to run your business that way and others will spend their money on who they want. Why must you force dictates salaries on people?

And if it loses they should pay too right? Do you think film companies lack power to negotiate?

and they have to pay the losses a company has right? Why can't they trade away that risk for set pay? Why should the Enron janitor have to pay for the losses executives accrued?

but not over $50 right?

So they paid them out of generosity? Why didn't you open a competing business that could have beat them on costs by eliminating waste?

Can you name a succesful fortune 500 company paying that little for qualified executives?

Wouldn't that give them a string in entice to fire those people? Why not? Would a law like that impact law firms and gas stations equally? Why? Is one likely to have more high skilled people them the other?

Do you know how supply and demand work? What happens to demand when you raise prices artificially?

 

This makes no more sense than the original version. If all these fairy tale "tax shelters" existed, why would the rich be paying all the taxes. One or the other of these claims is of necessity false, and it doesn;t take a lot of smarts to realize that.

It was a factual statement. Throughout history smart people have found humor in the bumblings of the not so smart. Such truth apparently hurts the feelings of some on the right.

 

Depends of the elasticities, which can be negative. Lacking information about quality differences, bimbo consumers frequently assume that a higher price must be associated with higher quality when no such thing is actually the case. Do try to remember that Econ 101 is not enough to make one an economist.

 

What tax is paid on government bonds?

You realize you aren't all that bright right? That your fawning about how brilliant you are is laughable and entertains all the right as you lavish the rich and power full with money to give to their crony friends? You are the one the duped politicians count on. Know that. Believe it. They produce nothing and you always want to give them more.

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Getting all the basics wrong doesnt make you one either.

 

That depends on the government issuing the bonds, and this STILL does not address the actual problem. If "governemnt bonds" are somehow going to allow the ealthy to evade new taxes imposed upon them (such as the French millionaire tax), why do the wealthy so plainly fail to use them now to evade the very considerable taxes they presently have to pay? No answer yet, and there will not be one. Just more feeble deflection.

Baseless personal attack.

Your signal is starting to break up, and shouldn't that have been "powerful"?

So simple elasticities are totally out of your league then? What a shock!

 

What is the tax rate again? We can get into other tax shelters that are more complicated but the easy ones first. Post that rate, don't dodge.

Who was it bragging about how brilliant they are in this thread? Inferring others were stupid? Your head is massive and since it no longer holds hair you mus have some better comebacks stores there then that.

Please explain.

How elastic is the price of unskilled labor?

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What is the tax rate again? We can get into other tax shelters that are more complicated but the easy ones first. Post that rate, don't dodge.

Who was it bragging about how brilliant they are in this thread? Inferring others were stupid? Your head is massive and since it no longer holds hair you mus have some better comebacks stores there then that.

Please explain.

How elastic is the price of unskilled labor?