President Obama keeps telling us that ‘the rich’ need to pay their fair share. But what happens when those who earn and have accumulated great wealth reach their breaking point?
In France we can watch this ‘tax the rich’ scheme in play. Their new Socialist Prime Minister Jean-Marc Ayrault promised the voters he would stave off austerity programs by increasing taxes on the super-rich to 75% on all earnings over One Million Euros. As the new government’s tax programs are proposed the wealthy are making their feelings known as an ever increasing number of rich make plans to leave the country.
Great Britain’s Prime Minister David Cameron stirred the pot last week when he announced that the UK would roll out the welcome mat for those rich who wanted to leave:
“If the French go ahead with a 75 per cent top rate of tax we will roll out the red carpet and welcome more French businesses to Britain and they can pay tax in Britain and pay for our health service and schools and everything else.”
Interest in luxury homes in the London area has increased 30% in the past three months. Realtors have also noted an improved market in the Switzerland area as the rich tell tax consultants they’d rather pay Swiss taxes than French.
If the Democrat mantra of tax the rich continues it will be even more important to watch the events of France. How will they pay for programs that are meant to benefit poor and middle class based on income from increased taxes on the wealthy if the rich decide to move to greener pastures? Wealthy families are not bound by countries or continents and will continue their jet set lifestyle based in whatever area they feel most welcome.
Once again we are reminded of The Iron Lady Margaret Thatcher’s famous words, “Socialist governments do make a financial mess… The trouble is that eventually you run out of other people’s money.”
