Readers of this blog may recall this blog post last year in which I discussed the ridiculous policy idea by the new government in France. In a move whose motive is clear but whose logic is just absurd, the government of France initiated to tax citizens for overtime tax. At that same time, there were discussions on further tax policy measures intended to raise the marginal tax rates on individuals whose income passed a certain threshold. Unbelievable as it is, the idea by President Hollande is to raise the marginal tax rates to 75%.
Gerard Depardieu, a very famous and wealthy citizen of France announced that he would take residence in Belgium but denied here that this was driven by this increment in the marginal tax rates. During the last weekend, the same actor received a Russian passport from none other than Vladimir Putin of Russia in an obvious rebuff to the French government.
To my mind, the government of France ought to be take to some reflection if a citizen who has paid substantial taxes over decades is suddenly showing preference for Citizenship in Russia. And I am sure that the differences between France and Russia do not rest with marginal tax rates and so perhaps Depardieu is right that calculations on tax liability is not the reason at all for this change. In spite of that, France's government should consider why a leading citizen is so happy to become Putin's buddy. Part of the answer is that both political and economic freedoms matter and citizenship can be cheapened with poor economic thinking manifest in ridiculously high and oppressive tax rates.
Update: I have to state that the government of France was stopped from raising the marginal tax rate to 75% by a court decision. For that reason, the rise has not occurred but it is clear that the administration is determined to raise it and will maneuver around the court's decision.
Gerard Depardieu, a very famous and wealthy citizen of France announced that he would take residence in Belgium but denied here that this was driven by this increment in the marginal tax rates. During the last weekend, the same actor received a Russian passport from none other than Vladimir Putin of Russia in an obvious rebuff to the French government.
To my mind, the government of France ought to be take to some reflection if a citizen who has paid substantial taxes over decades is suddenly showing preference for Citizenship in Russia. And I am sure that the differences between France and Russia do not rest with marginal tax rates and so perhaps Depardieu is right that calculations on tax liability is not the reason at all for this change. In spite of that, France's government should consider why a leading citizen is so happy to become Putin's buddy. Part of the answer is that both political and economic freedoms matter and citizenship can be cheapened with poor economic thinking manifest in ridiculously high and oppressive tax rates.
Update: I have to state that the government of France was stopped from raising the marginal tax rate to 75% by a court decision. For that reason, the rise has not occurred but it is clear that the administration is determined to raise it and will maneuver around the court's decision.
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