Can You Blame Them? The French Flee…75% Tax Rate
The rich are fleeing France. Can you blame them? Newly elected president Francois Hollande is proposing a massive, immoral, and unfair tax rate of 75% on the wealthy to help keep France’s bloated welfare state alive. However, what’s wrong with taxing anyone making above $1 million dollars a year? First, the wealthy, also known and the job creating and investing class, shouldn’t be squeezed because they’re successful. The success they’ve earned is the incentive for all of us to work hard and get to that point of economic security. In a competitive capitalist system, there will be winners and losers. The person with the most innovative idea wins. It’s as simple as that, which is a concept that is becoming anathema to the greater socialist sympathizing European electorate. Even our own president believes in a “shared prosperity.”
This new system has many of the investing class in France asking if they should bother to remain in their home country. In addition, it provides a little foresight into how our nation runs its welfare state. A greater proportion of the population supported by an ever diminishing tax base. Fellow Resistance 44 writer, Christine Rousselle, posted this column in her other publication, The College Conservative, on August 9th where she said :
France has incurred their massive debt problem via an extremely generous social welfare program and an unwillingness to embrace any sort of austerity measures. It’s great to take care of citizens via healthcare and other benefits, but if a country cannot produce the money to actually pay for programs like this, problems will manifest themselves. France is spending itself into oblivion and instead of cutting spending, they are taxing those who actually contribute to society and to the economy.
If tous “les Riches” leave France, France will definitely be in a bit of a pickle. Their current top tax rate is 41%, which is high, even for European standards. The proposed 75% rate would be the new highest tax bracket in all of Europe. Only an estimated 7,000 to 30,000 people in France even earn enough money to place them into the 75% bracket— a number that’s certain to dwindle.
The rich did not get rich by being stupid. They’ll figure out a way to avoid paying the tax, or they’ll leave the country. No French citizen making 800,000 euro is going to actually want to make any more money than that. Why would they? They would be punished harshly for their new earnings. Also, what business is going to want to move into an area that treats those who make money so poorly? According to the New York Times, several firms have already backed out of moving into France. This is costing jobs for citizens of France.
The French cannot continue like this much longer. Instead of taxing the wealthy at extreme rates, perhaps the French should start giving birth to additional tax-payers. France hasn’t had fertility rates at above-replacement levels since 1974, and has experienced a birth rate as low as 1.75 births per woman in 1994.
Well, in terms of socio-economic security, France is about to be on life support. Nevertheless, Rousselle is right. How is it moral to keep distributing these payments when you know they’re unsustainable? Do these leftys in France really think they can dump the weight of the welfare state on 30,000 citizens? It exposes the delirium the political left experiences when it comes to solving the biggest problem with socialism: what to do once we’ve spent everyone else’s money. Lastly, any economic model which hinges its success on a transfer of wealth is grossly unfair. Look at our own Social Security model. It was great for our grandparents’ generation, but as our parents approach retirement age; they’ll be left with virtually nothing. It’s the quintessential ponzi scheme. For the millennials, we’d be lucky to see a penny once we hit sixty-five. On the other hand, we’ve known Social Security will inevitably become insolvent, so shame on the baby boomers for their inaction.
In all, the rich in France see the high taxes and the left’s lust to destroy their success, which would have any job creator running for the exit. It’s a poor business environment that even has some members of the Hollywood left praising America. You cannot help the poor by destroying the rich. I’m sure the French will learn this, just how they learned that German tanks CAN go through the Ardennes Forest.