Will this cause France to get into Bitcoin - 75% Tax on Rich - page 4.

gangstabit

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Quote from: MrPalmer on December 31, 2013, 02:40:13 AM

While it may be easy to criticize the French Gov for their tactics here, I do think the intention is noble. We all know that some salaries are HUGE. Personally, I think it's admirable that they are trying to limit that, and not allow anyone to earn an absolutely insane amount of money for being CEO.

Yes, free market, we should all be able to make limitless amounts of fiat, blah blah blah. It's not sustainable. Will be interesting to see how this play out.

I agree they have good intentions.

Hitler had good intentions too (wikipedia Godwin's law) Cry

nobody cares about the intentions, it's the result that matters. That's where a lot of people who don't understand economy get it wrong - they shout these "tax the rich" slogans without knowing how this in the long run this affects them. They have good intentions, but with their stupidity they ruin everything.

Operatr

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www.DonateMedia.org

Good.

Let the banks and governments keep pushing people toward Bitcoin. Super high taxes, account confiscations, big fees, bigger inconvenience, etc, are all coming down the pipe as the dinosauric big banking cartels try to save themselves. In the end who do you think they will care about more, you or them?

We can just sit back and relax, these monstrosities in power are doing all the work for us by giving basically zero incentive to stay with fiat currency.

MrPalmer

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While it may be easy to criticize the French Gov for their tactics here, I do think the intention is noble. We all know that some salaries are HUGE. Personally, I think it's admirable that they are trying to limit that, and not allow anyone to earn an absolutely insane amount of money for being CEO.

Yes, free market, we should all be able to make limitless amounts of fiat, blah blah blah. It's not sustainable. Will be interesting to see how this play out.

beetcoin

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Quote from: Johnny Bitcoinseed on December 31, 2013, 01:34:21 AM

People making that kind of money tend to be the innovators, the risk takers, the factory makers, the employers. They are the pople who work 80-hour weeks to make things happen.

France is shooting itself in the foot, may as well be shooting itself in the head. When these key people in the economy decide to either leave France or just plain stop doing what they do the French economy will slide ever more quickly into the gutter.

They never learn, do they?

Beetcoin - you say "give them government assistance". Just where do you think these government funds come from? From the taxpayers (Note: the government produces NOTHING. Government only consumes. Government can only "assist" by raising taxes LOL)

or, on the other side of the coin, they are the lazy bankers who game the system (for short-term profits) to win at the cost of the rest of the country. i'm not saying one side is right or wrong, but it's a complex issue.

BigJohn

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This law is complete nonsense. They're charging it on salaries? As if the top 1% this is supposed to hurt even earn salaries. All their money comes from dividends, capital gains, bonuses, etc.

This is the French top 1% making it harder for the French top 2% to ever join them.

Johnny Bitcoinseed

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Johnny Bitcoinseed

His value to the company he works for is a certain amount, but he only gets 1/4 in pay. The government confiscates 3/4 of his would-be pay or the company is forced to keep it and not pay the guy what he is worth.

Guy moves to another country that does not confiscate from him what he is worth.

France loses thousands of the best and brightest. Industry suffers. Cannot compete with countries that welcome with open arms the cream of the crop. France becomes a country of low-wage workers and people dependent on handouts from .gov (which may be the whole object of this exercise in stupidity).

skivrmt

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They tried this tax a few months back purely on income and basically the courts shot it down and wealthy citizens started to flew. Courts said it was unconstitutional.

This new law is a roundabout way to still tax the income simply because companies wont pay salaries above 1MM Euro. If this law sticks...

DeathAndTaxes

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Gerald Davis

Quote from: gurcani on December 30, 2013, 09:56:55 PM

It is effectively a "maximum wage" law.
http://en.wikipedia.org/wiki/Maximum_wage

Defacto it pretty much is a maximum wage law as no company is going to pay employees over the "cap" only to be slammed with an obviously punitive tax (on top of existing payroll, sales, and corporate income tax). Companies will cut salaries (or offer alternative compensation) to avoid the tax and the "tax" will produce no significant revenue but the government will have to already know that will be the outcome and thus the "tax" isn't intended as a tax at all but a method of control.

DeathAndTaxes

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Gerald Davis

Quote from: gannicus on December 30, 2013, 09:48:31 PM

This taxation is obviously absurd but I feel it is important to remember here that the 75% is over the amount that exceeds 1M and not over 1M itself. If your salary is 1.1M you will pay 75% of 100k + n% over the remaining 1M (n is around 40%, depends on many factors). This leads to an "effective" tax rate a bit lower than 75%. Still, absurd.

It is NOT an income tax. French citizens will continue to pay whatever (likely insane) income tax exist. This is a tax or more aptly a penalty paid by the COMPANY which dares to issue such a high salary. You state it is on the amount over 75% can you point to a cite because nothing in the article indicates that. Still even if it is only on the amount of the salary over 75% it is not an income tax and not paid by the employee.

In essence France has said "employers are not allowed to pay anyone over 1M EUR and if you do we will slam you with a 75% fine". It is a defacto ban on salaries the government considers too high, the only thing more strict would be outright prohibition by making it a criminal offense for a company to pay an employee more than $1M EUR annually.

Johnny Bitcoinseed

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Johnny Bitcoinseed

People making that kind of money tend to be the innovators, the risk takers, the factory makers, the employers. They are the pople who work 80-hour weeks to make things happen.

France is shooting itself in the foot, may as well be shooting itself in the head. When these key people in the economy decide to either leave France or just plain stop doing what they do the French economy will slide ever more quickly into the gutter.

They never learn, do they?

Beetcoin - you say "give them government assistance". Just where do you think these government funds come from? From the taxpayers (Note: the government produces NOTHING. Government only consumes. Government can only "assist" by raising taxes LOL)

beetcoin

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Quote from: gannicus on December 30, 2013, 09:48:31 PM

This taxation is obviously absurd but I feel it is important to remember here that the 75% is over the amount that exceeds 1M and not over 1M itself. If your salary is 1.1M you will pay 75% of 100k + n% over the remaining 1M (n is around 40%, depends on many factors). This leads to an "effective" tax rate a bit lower than 75%. Still, absurd.

that was what i was assuming.. it's progressive. that's still what i think as 75% flat tax is exorbitant and will destroy even the middle class, unless they gave government assistance.

mpattison

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well, it certainly can't hurt, that's for sure.
idon't know how much it helps bitcoin though.

gurcani

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It is effectively a "maximum wage" law.

http://en.wikipedia.org/wiki/Maximum_wage

gannicus

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This taxation is obviously absurd but I feel it is important to remember here that the 75% is over the amount that exceeds 1M and not over 1M itself. If your salary is 1.1M you will pay 75% of 100k + n% over the remaining 1M (n is around 40%, depends on many factors). This leads to an "effective" tax rate a bit lower than 75%. Still, absurd.

battlescars

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was this bill even voted on to get it passed? What in the world were they thinking when they wanted to go and pass the bill.
This is an outrage because it isnt even an income tax? or is it? how does this exactly work out>? it is confusing me.

beetcoin

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Quote from: DeathAndTaxes on December 30, 2013, 09:32:35 PM

Weird the tax isn't an income tax, it is a penalty tax on the companies which pay its employees "too much". The company pays a 75% tax on the salaries which exceed 1M EUR per year. So company pays you 1M EUR, company coughs up 750K EUR to the government. Company cuts your salary to 999,999 EUR company pays no tax (well no extra millionaire taxes). I have a feeling many companies will simply cut salaries which are near the 1M mark and offer some form of deferred compensation.

wtf, it's not progressive? that's ridiculous then.

black_swan

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Quote from: DeathAndTaxes on December 30, 2013, 09:32:35 PM

Weird the tax isn't an income tax, it is a penalty tax on the companies which pay its employees "too much". The company pays a 75% tax on the salaries which exceed 1M EUR per year. So company pays you 1M EUR, company coughs up 750K EUR to the government. Company cuts your salary to 999,999 EUR company pays no tax (well no extra millionaire taxes). I have a feeling many companies will simply cut salaries which are near the 1M mark and offer some form of deferred compensation.

That's exactly what will happen.
75% is bad joke. I guess they wanted to attack certain businesses. Why don't they just do it in the open.

battlescars

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I simply can not believe this law is passed, it is not an income tax it is basically saying, if you have more than 1m you
have a lot of power , too much power, power that we can not control and power that we want to have.
Why would anyone want to live in France after this law? this is BS - .

DeathAndTaxes

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Gerald Davis

Weird the tax isn't an income tax, it is a penalty tax on the companies which pay its employees "too much". ~~The company pays a 75% tax on the salaries which exceed 1M EUR per year. So company pays you 1M EUR, company coughs up 750K EUR to the government.~~ Correction: The tax is on the employer for 75% of the wages ABOVE 1M EUR so it is in effect a wage cap. Instead of the govt saying "wages over 1M annually are illegal" they just made it asininely expensive to pay wages that high so ... companies won't.

Company cuts your salary to 1,000,000 EUR or less, and the company pays no tax (well no extra millionaire taxes). I have a feeling many companies will simply cut salaries which are over the 1M "cap" and offer some form of deferred compensation.

battlescars

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i dont like that law, 75 percent tax? are u kidding me why would anyone want to live in france, and france wont prosper now.
Maybe for the average man this law is good maybe it isnt. But millionaires will be leaving france a in great number now.
So when was this law passed anyways? i havent heard about this .

Topic: Will this cause France to get into Bitcoin - 75% Tax on Rich - page 4. (Read 5444 times)