This is what happens when you "tax the rich" (unemployment, wages)

[CheyDee]

Most of us have read that France plans to increase taxes on the super rich.

"Socialist President Francois Hollande's 2013 budget amounts to France's toughest belt-tightening for 30 years as the debt crisis takes its toll on the euro zone."

<snip>

"But the budget dismayed business by opting for tax hikes -- including a 75 percent tax on those earning over one million euros a year -- by holding public spending and not cutting government jobs.

With Hollande facing record unemployment and economic stagnation, there were also fears the deficit target will slip as France falls short of the modest 0.8 percent economic growth rate on which it is banking for next year."



In response to this proposed tax increase, there is this article:

Southeby's Says Rich French Are Leaving France :

"Rich French families are leaving the country because of fiscal measures being put in place by Francois Hollande’s government, Les Echos reported, citing Sotheby’s International Realty France.

That trend explains the good business in properties worth more than 5 million euros ($6.1 million), which are being bought by foreign purchasers looking for stable real-estate investments in France, the newspaper said, citing the company."


Also this article:

Rich French Citizens Are Leaving France:

"Vincent Grandil, a partner in the Paris law firm Altexis, which caters to rich French citizens, is increasingly being asked by his clients if now would be a good time to flee France for countries with lower tax rates:

We’re getting a lot of calls from high earners who are asking whether they should get out of France. Even young, dynamic people pulling in 200,000 euros [$250,000] are wondering whether to remain in a country where making money is not considered a good thing."


And this article:

The Rich Leave France:

"The richest man in France, Bernard Arnault (Louis Vuitton, etc.) threatens to become Belgian citizens to avoid tax increases that will install the new president François Hollande."


From the second link, (emphasis mine):

"Well, it's quite interesting because he's been very clear that he doesn't expect to raise almost any revenue at all from the tax rate. He says what he wants to do is impose a sort of morality on high earners and on what he calls indecent wages."


Does any of this sound familiar?