An ‘Impossible’ France?: Experiment Could Deliver Blow to One of Capitalism's Biggest Myths

[marmar]

from truthdig:


An ‘Impossible’ France?

Posted on Oct 2, 2012
By Alexander Reed Kelly


A bold experiment is under way in the world’s fifth-largest economy: As part of a recovery plan aimed at plugging a $48 billion hole in the French budget, leftist President Francois Hollande announced last week a 75 percent tax on the personal incomes of anyone earning more than $1.3 million a year, effective for two years beginning in 2013.

The decision has some of the country’s top earners, led in the media by cosmetics tycoon Jean-Paul Agon, suggesting that the new rules will make France inhospitable to commerce, and implying that the impending blow to their bank accounts may compel executives to take their moneymaking activities elsewhere.

“If there is such a new tax rule,” the L’Oreal CEO said in an interview before the figure was confirmed Friday, “it’s going to be very, very difficult to attract talent to work in France, almost impossible.”

Agon’s warning reflects an attitude among the rich that is older than capitalism itself. If you tax us too much, the thinking goes, then the cost of providing the goods and services society requires will become too high. We won’t be able to pay the wages our workers deserve, and our talents for enterprise will find more favorable conditions elsewhere. ...................(more)

The complete piece is at: http://www.truthdig.com/report/item/an_impossible_france_20121002/

[tama]

1. Talent?

Greedy sociopaths, just go away.

[surrealAmerican]

5. What a world these people live in!

People who earn less than 1.3 million a year just don't have "talent" I guess?

[tama]

7. They actually believe their bull

Like, MP's must be paid more or "talented" people will not run but take jobs in better paying private sector.

Duh, if money is your priority instead of public service, why vote you for public office in the first place?

[Spitfire of ATJ]

2. "We won’t be able to pay the wages our workers deserve"

You aren't doing that now.

[kenny blankenship]

4. True. But they routinely threaten to take hostages anyway.

[Spitfire of ATJ]

6. That invokes their biggest fear....

....If EVERY country does it, there's no place to run.

[rock]

3. After all what ceo would want to earn (say) 100 million a year

only to have 75 million taken away as taxes? Any takers? (Sarcasm)

[supernova]

8. Hollande is calling their bluff

He's betting that the French monied class would still rather live in France than elsewhere.

[pa28]

10. Exactly right.

I suppose you could trade your French citizenship for two years of tax relief and I'm sure a few will. Maybe even ten.

[Quantess]

12. And that is a good bet.

[fasttense]

13. Hollande is also betting that he can implement a few regulations against corporations that move out.

"In the event that a company of consequence decides it is worthwhile to emigrate, a combination of business taxes and trade embargoes could make it difficult for the firm to continue doing business at home. Nations privileged to host major markets are uniquely positioned to play a consumer hostage game, separating manufacturers from the customers who live within their borders. Corporations that depend on government contracts would be especially vulnerable to such sanctions. At the very least, a state could attempt to impose exit taxes."

No corporation, especially one that moves it's business overseas to keep from paying taxes, has a right to sell to the people of a nation. The roads, cable lines, septic systems, water, sanitation systems, communication systems and all the infrastructure of a market place are paid for and developed by the people of a nation. If a corporation decides it wants to sell its crap in that market, it wants to use that infrastructure built and paid for by that nation, then it has to play by the rules. And one of the rules should be it pays its fair share in taxes.

[pa28]

9. I have to say I've really enjoyed watching the Hollande presidency so far.

During the campaign they hit him for being modest and mousy but as it turns out he's a lion.

If he's wrong they'll have to prove it.

[Manifestor_of_Light]

11. Hollande is a cool dude, from what I have seen.

And on a completely frivolous note, saying this as a woman, he is much more attractive than Sarkozy. The head is bald, but the lights are most definitely ON!!!

[cbrer]

14. Sooo all the retailers and other profiteers are going to leave France?

Yeah right!

Thanks for the heads up Marmar