France’s leaders are calling actor Gérard Depardieu “unpatriotic” and “pathetic.” You see, Depardieu is leaving France. He’s leaving because of the new French tax laws.
French President François Hollande is trying to push through a 75 percent income tax, plus a higher “wealth” tax, higher capital gains taxes, higher inheritance taxes and a tax on selling your business, among other taxes.
Depardieu has had enough.
He said he paid 85 percent of his income in taxes last year. He says he’s paid 145 million euros in taxes to France over his career (roughly $190 million).
So he’s moving to Belgium to avoid taxes.
France’s Prime Minister called this move “pathetic, really.” Jean-Mark Ayrault continued: “Paying taxes is an act of patriotism and we’re asking the rich to make a special effort here for the country.”
At what level is paying tax no longer an “act of patriotism”? This question doesn’t apply just to France. European countries are just a few years ahead of the United States in terms of becoming more socialist, with an insatiable demand for more of your income to pay for ever-growing government programs.
Depardieu took offense at being called “pathetic.” Based on that, he offered to surrender his French passport. Belgium’s finance minister said he welcomes Depardieu and “any other French citizens.” And Russian President Vladimir Putin offered Depardieu citizenship.
Other successful French citizens are leaving, too. For example, the founder of Moët Hennessy Louis Vuitton is also applying for citizenship in Belgium.
Even worse, not only are talented people leaving France, but you can’t get talented people into France to work.
“We can’t bring high-level managers to France,” Eric Chaney, an economist at French insurer AXA, told Bloomberg News. “They work in an international market and the market price for those salaries is well above 1 million euros.”
So major French companies are looking to hire senior managers in London or Amsterdam instead of Paris, Chaney explained. France will miss out on all their taxes. By raising tax rates so high, instead of getting more in taxes, France will get no taxes from these guys.
Again, at what level is paying tax no longer an “act of patriotism”? At what level does levying tax become an “act of confiscation” by the government? And when that point is reached, when is it time to give up on your country?
I don’t know what the right level is. It appears that Depardieu has found the level for himself, and that’s 85 percent of his income.
What do you think is the right level? How much of your income should the government be allowed to take? Is Depardieu a traitor? Or is he courageous?
With ever-increasing budget deficits in the United States and no real political will (on either side of the aisle) to dramatically cut entitlements, it’s a safe bet that higher and higher tax rates are coming in the United States.
It’s time to start thinking about how “patriotic” you want to be.
Good investing,
—Steve Sjuggerud
This article was originally published at DailyWealth.com on Jan. 3 2013.
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I would have to say that when a country takes more than 10% of a persons income, through any means of taxation, whether it be sales tax on items or capitol gains, or any thing else, then it’s time to fight the greedy —–. Now as regards Federal Income Tax? Any amount at all is an act of treason by your government. There should be NO Federal income tax. That is theft. — For America, If the states want an income tax, it should forever stay below 10 %… Just My Opinion…
Politicians in ANY position, from the President/Congress/Senate to the local City Mayor should never be allowed to make more than 10,000 Dollars more than our nations poverty line. Just to keep it real!
No elected official should be allowed to serve more then one 4 year term in any office. In other words – Once you have held office as say – Governor, you can never hold any other office in this country again.
If you do those things, you will see a great boom in the economy and general welfare of ALL of the people.
When high and middle class working people have to support the ever growing government and the people who have become “professional welfare” recipients, then it is time to also make the decision to either hide your money or leave your country. A flat tax for all (wealthy, middle class, poor, corporations, and any income earning entities) would pull our government out of debt, but only in the Congress and Senate PASS A BUDGET, and are constitutionally forced to live within that budget, then and only then will America become again America instead of a poor excuse of socialistic government goal.
Yes, a fixed percentage (say 10%) would be reasonable, but first our government must become reasonable. Runaway defense budgets is a failure when your fighting people that don’t have warships, aircraft, tanks, or even jeeps. Six figure salaries for politicians and big shot bureaucrats is a cruel joke when they ship jobs abroad as fast as possible and throw people on unemployment and welfare. Allowing big business to run roughshod on laws and regulations and doing nothing to these criminals, except to give them tax breaks, fly’s in the face of justice. Reaganomics is a compleat failure that is dragging the nation to ruin. Our only hope and choice is to impeach all of these crooked bastards and replace them with people of integrity. Unfortunately we seem to lack that kind of character or courage.
Gérard Depardieu is not unpatriotic, hes probably leaving because he is getting older and getting closer to death and because if he has a family he wants to protect their inheritance. Anyone who has paid such high taxes as 85% in France without having moved before has got to be more than patriotic….probably madly in love with his country.
Funny thing is, these high taxes will drive down the value of most assets in France so when people do sell they will not have much left anyway…that is what high tax do…they destroy wealth of the enterprising and the workers and in turn destroy the nation. It is the Politicians who are UNPATRIOTIC by leading their country so that both poor and rich become equally poor thats what socialism thrives on. It destroys everything in its path.