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[ComputerMKII]

France's 75 percent tax 'to apply for two years'

French president’s François Hollande’s flagship 75 percent tax on millionaires will only be applied on earnings made in the years 2013 and 2014 before being scrapped, according to reports this week. Football clubs however, may exacape the levy, a minister has sugested.

The tax had appeared dead and buried at one stage but President Hollande’s much-maligned millionaires tax will see the light of day, it appears, if only for two years.

According to reports in Les Echos newspaper the levy on incomes over €1 million will apply to earnings made in the year 2013 and 2014.

The flagship proposal of Hollande's election campaign fell at the final hurdle in December when the country’s highest court – the Constitutional Council - ruled the tax on the highest earners was in fact "unconstitutional".

An embarrassed French government was forced to go back to the drawing board but insisted it would return with a new proposal.

In his televised address to the nation in July, President François Hollande announced that his supertax, that had been slammed by Gérard Depardieu among others, would instead be paid by businesses and not by individuals as first proposed.

The levy on the portion of salaries over €1 million would hit all firms, including football clubs, the government insisted, much to their anger.

But citing sources close to the government, Les Echos says the government will move to appease football clubs by imposing a cap so that companies will only have pay a certain percentage of their revenue.

And speaking after the publication of Les Echos report, France’s Finance Minister Pierre Moscovici suggested the government could even be ready to perform a u-turn and allow the country’s football clubs to be exempt from the tax.

With big-spending clubs like PSG and Monaco paying astronomical salaries to some of its players, football clubs will be hit hard by the new tax.

“We are looking at different views on this issue, but it’s true that we have football clubs which are in a fragile financial state,” said Moscovici, before adding that it would it not be possible to do a special measure just for football clubs.

The watered down proposal appears to highlight the fact the 75 percent tax is designed by the government more as a symbolic move to show it is making the rich pay their share in tough economic times, rather than a money raiser.

The levy is expected to only affect a few thousand taxpayers and will only raise a minimal amount of revenue as part of wider efforts to slash the budget deficit.

The Elysée Palace are not commenting on the latest report in Les Echos.

Hollande is determined that his flagship election promise will be implemented and will want finance chiefs to make sure it is watertight so he does not have to face the embarrassment of seeing it rejected for a second time.

He will face ongoing opposition from business chiefs, however, with the leader of employer’s union MEDEF Pierre Gattaz calling for the tax to be scrapped after he was elected in August.

http://www.thelocal.fr/20130910/france-75-percent-tax-to-apply-for-two-years

 

[Dennis]

If football millionaires are exempt I will facepalm like I have never facepalmed before.

The law is ridiculous and the most brazen populistic crap in living memory.

 

[Guerrillas in the Mist]

If football millionaires are exempt I will facepalm like I have never facepalmed before.

The law is ridiculous and the most brazen populistic crap in living memory.

It's an utterly baffling exemption. Surely Football Clubs come under corporation tax (or whatever the French equivalent is)?

 

[Ghost]

wow, what a waste of time.

 

[gutter_trash]

LOL football players exempt

 

[battousai11]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

 

[Deleted member 13876]

Oh wow at the soccer exemption.

 

[ElFly]

Suddenly everyone invests in football clubs.

 

[ComputerMKII]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

Not that I agree with the law, but it's only 75% of what you earn over one million euros, not 75% of total earnings.

 

[Kiraly]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

lol

And here we go.

 

[DeFiBkIlLeR]

Not that I agree with the law, but it's only 75% of what you earn over one million euros, not 75% of total earnings.

Except those that earn over one million euros tend to earn A LOT over one million euros..maybe 4,5,6 million or more.

Very few will stop at €1,000,001....)

 

[Liha]

A good law but the football part is just embarrassing.

 

[jambo]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

Do you seriously not understand how progressive tax systems work?

 

[Orbis Tabula]

Every major corporation will now have a Football Division which classifies it as a football club. Which would be pretty neat.

 

[Milchjon]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

Oh come on, people still don't understand this?

Your first X Euros don't get taxed. The next X additional Euros get taxed a certain percentage. And so on, until you get over a certain amount, like say a million Euros per year. Everything ABOVE that gets taxed higher, in this case 75%.

So if you earn two million per year, you pay 750000 € for the second million, but much less for the first.

Still too fucking much though, stupid populism.

 

[MarkMclovin]

Sacre Bleu!

 

[ThoseDeafMutes]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

People have already explained the progressive taxation thing, but people earning >1mil per year are not exactly toiling away in mineshafts. Progressive taxation already exists at 50% or more for the highest bracket in most countries, so the principle is already in place. It's just whether you're drawing the line at 50, 60, or 75 in this case that is the difference, and that's ultimately an arbitrary one for what is acceptable vs not acceptable.

 

[itsgreen]

It's an utterly baffling exemption. Surely Football Clubs come under corporation tax (or whatever the French equivalent is)?

The problem is that most football players have an after tax income in their contracts...

So the clubs would have to pay all those taxes, and effectively have to pay 300% more to their players...

 

[Phoenician_Viking]

The football exemption is laughable.

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

Lol.

 

[nateeasy]

I didnt know Obama was elected to president of France.

 

[wrowa]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

I don't think someone who earns north of a million a year can just stop working full-time if he wants to keep his job.

 

[Tenks]

Oh come on, people still don't understand this?

Your first X Euros don't get taxed. The next X additional Euros get taxed a certain percentage. And so on, until you get over a certain amount, like say a million Euros per year. Everything ABOVE that gets taxed higher, in this case 75%.

So if you earn two million per year, you pay 750000 € for the second million, but much less for the first.

Still too fucking much though, stupid populism.

If someone is that rich generally they're pretty savvy as well. Would it be possible to bypass this tax via some loophole of deferring your salary until after this tax law passes?

 

[perryfarrell]

During Eisenhower's reign, the US had a marginal rate of 92% for the highest earners.

And what did Warren Buffett say the other day his rate was? Lower than his secretary's? 11 % or so?

 

[Shinjica]

I didnt know Obama was elected to president of France.

Silly american

 

[storafötter]

The footballer exception is hilarious. Look forward to seeing what kind of train wreck we are looking at in a few years.

 

[BeerSnob]

Sounds like an interesting idea, I hope it works to their benefit and can be adopted in more countries.

 

[Mael]

If football millionaires are exempt I will facepalm like I have never facepalmed before.

The law is ridiculous and the most brazen populistic crap in living memory.

Prepare some skin lotion because that one will hurt...

Stupid law that will prove to cost more than it'll help earn back.
Don't expect many people to pay this, if you're that rich and doesn't have an army of accountant making sure you don't pay a dime you're a moron....especially in France.
Now watch all CEO getting hired as part of the corporate football team...

 

[RumblingRosco]

During Eisenhower's reign, the US had a marginal rate of 92% for the highest earners.

And what did Warren Buffett say the other day his rate was? Lower than his secretary's? 11 % or so?

I haven't heard this about Buffet, but my guess is that the 11% is what he is effectively being taxed because he probably has a very low salary and instead makes the vast majority of his money through stocks/dividends/etc, which are only taxed at 15%. So, throw on some deductions of some sort (maybe donations?) and he ends up around 11%.

Capital gains tax at 15% is a beautiful thing when you have the money to invest.

 

[ComputerMKII]

During Eisenhower's reign, the US had a marginal rate of 92% for the highest earners.

And what did Warren Buffett say the other day his rate was? Lower than his secretary's? 11 % or so?

Presidents 'reign'? Certainly you meant 'mandate'.

 

[travisbickle]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

I never know what's worse when this happens?

The fact that someone doesn't know how progressive tax work or that this person is most probably in the lowest tax bracket and is against taxing rich people more!

 

[Mael]

I never know what's worse when this happens?

The fact that someone doesn't know how progressive tax work or that this person is most probably in the lowest tax bracket and is against taxing rich people more!

You know what they say, when rich people tighten their belts poor people die....
I guess rich people not using their belts on poor people's necks would be a proper way to sort this out but hey...

 

[patapuf]

I never know what's worse when this happens?

The fact that someone doesn't know how progressive tax work or that this person is most probably in the lowest tax bracket and is against taxing rich people more!

Being against unreasonable taxes is not a bad thing. Doesn't have to affect me personally to be against a policy.

 

[Jason's Ultimatum]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

That's not how taxes work, chief.

 

[I H8 Memes]

It should be the same in America for a decade considering the ridiculously low taxes the top bracket has gotten away with since 2003. Then settle somewhere just under 50% after that. And the capital gains tax rate should be around 35% to 40%. It's ridiculous how the people in the top tax bracket have been able to take advantage of the infrastructure that was built on the taxes paid by those before them, and now that it's their turn they don't want to pay their fair share.

 

[iamshadowlark]

Oh come on, people still don't understand this?

Your first X Euros don't get taxed. The next X additional Euros get taxed a certain percentage. And so on, until you get over a certain amount, like say a million Euros per year. Everything ABOVE that gets taxed higher, in this case 75%.

So if you earn two million per year, you pay 750000 € for the second million, but much less for the first.

Still too fucking much though, stupid populism.

Thats fucking terrible.

 

[zma1013]

Silly american

 

[Slavik81]

Do you seriously not understand how progressive tax systems work?

Perhaps he understands incentives. Once someone has made 1 million dollars, it's the marginal tax rate that they'd consider when determining whether they'd work more vs take a vacation, not the average tax rate.

His statement is completely reasonable, though obviously only applicable to those who make 1M or more.

 

[battousai11]

Not that I agree with the law, but it's only 75% of what you earn over one million euros, not 75% of total earnings.

lol

And here we go.

Do you seriously not understand how progressive tax systems work?

Oh come on, people still don't understand this?

Your first X Euros don't get taxed. The next X additional Euros get taxed a certain percentage. And so on, until you get over a certain amount, like say a million Euros per year. Everything ABOVE that gets taxed higher, in this case 75%.

So if you earn two million per year, you pay 750000 € for the second million, but much less for the first.

Still too fucking much though, stupid populism.

People have already explained the progressive taxation thing, but people earning >1mil per year are not exactly toiling away in mineshafts. Progressive taxation already exists at 50% or more for the highest bracket in most countries, so the principle is already in place. It's just whether you're drawing the line at 50, 60, or 75 in this case that is the difference, and that's ultimately an arbitrary one for what is acceptable vs not acceptable.

The football exemption is laughable.



Lol.

I don't think someone who earns north of a million a year can just stop working full-time if he wants to keep his job.

I never know what's worse when this happens?

The fact that someone doesn't know how progressive tax work or that this person is most probably in the lowest tax bracket and is against taxing rich people more!

That's not how taxes work, chief.

Perhaps he understands incentives. Once someone has made 1 million dollars, it's the marginal tax rate that they'd consider when determining whether they'd work more vs take a vacation, not the average tax rate.

His statement is completely reasonable, though obviously only applicable to those who make 1M or more.

Sorry I didn't expound on my comment. Slavik81 understood my intention and was definitely more adept than me at explaining it. Obviously this would only affect people making 1M or more, but it would be a choice of working to go over 1M or taking a vacation once they reach 1M.

I know a lot of physicians who make enough money in six months and either work in a different country to avoid getting taxed a ridiculous amount after they make the cutoff or just take a vacation for half the year.

 

[Clevinger]

I know a lot of physicians who make enough money in six months and either work in a different country to avoid getting taxed a ridiculous amount after they make the cutoff or just take a vacation for half the year.

Alphanoid, is that you?

 

[battousai11]

Alphanoid, is that you?

Sorry, don't get the reference. Can you help me out?

 

[Clevinger]

Sorry, don't get the reference. Can you help me out?

Someone who made very similar made up claims regarding taxes about a lot of rich people he supposedly knew.

 

[Korey]

75%? When you only take home a quarter of what you make, I think it would be a major disincentive for people to continue working full time.

That's not how taxes work.

And wtf at the random soccer player exemption...lol

 

[battousai11]

Someone who made very similar made up claims regarding taxes about a lot of rich people he supposedly knew.

Oh sorry, not him; but what I said was true, although it's only anecdotal since I don't see their tax forms or anything.

 

[War Peaceman]

Sorry I didn't expound on my comment. Slavik81 understood my intention and was definitely more adept than me at explaining it. Obviously this would only affect people making 1M or more, but it would be a choice of working to go over 1M or taking a vacation once they reach 1M.

I know a lot of physicians who make enough money in six months and either work in a different country to avoid getting taxed a ridiculous amount after they make the cutoff or just take a vacation for half the year.

So what? Someone else can do their job instead. That is a good thing. A wider spread of money is always preferable to more concentrated money. Once you are earning over a £1000,000 /Euros you really don't need any more.

I was reading some eighteenth century documents the other day and even they, with their rudimentary economic knowledge, understand that money is better in circulation rather than in a few pockets.

 

[Photolysis]

Rich people tend to be not only very adept at finding ways to reduce their tax obligations, but also have the resources to do so.

And if you try taxing people too much, they'll just go elsewhere.

 

[ComputerMKII]

French football clubs will pay 75 percent super tax

France confirmed on Monday that the 75 percent super tax on millionaires will indeed apply to the country’s football clubs, despite opposition from league bosses. However the government has made one compromise to appease mega wealthy clubs like PSG and Monaco.

After months of “will they” or “won’t they” speculation, France’s sports minister Velerie Fourneyron confirmed on Monday that the country’s football clubs will not be exempt from the new 75 percent super tax.

The tax, one of President François Hollande’s flagship election proposals, is included in the government’s 2014 budget, which was announced last week, but has not yet been approved by parliament.

Under the proposal companies will be liable to pay the 75 tax rate for the portion of employees' salaries above €1million annually.

And despite warnings from France’s football chiefs that the French league would be ruined if clubs had to pay the tax, Fourneyron insisted there will be no exceptions to the rule.

“There are no special measures. Football will be affected by the tax on high incomes,” the minister told Le Figaro.

“Why should clubs be exempt from this tax?” she added.

Two French clubs in particular will be hit hard by the new tax.

Monaco and Paris Saint-Germain have spent enormous sums of money in the last two years, bringing in some of the biggest players in world football like Zlatan Ibrahimovic and Radamel Falcao and paying them astronomical salaries.

However league chief Frederic Thiriez said it won’t just be PSG and Monaco which will be affected. THhriez estimates as many as 13 clubs in Ligue1 will be hit by the tax for a total of €44 million.

However Fourneyron dismissed said “the impact be will be much lower than the figures announced by Thiriez.” The minister also announced a cap on the tax in a bid to appease worried clubs.

The revenue from tax will be capped at 5 percent of turnover of clubs in order to reflect “the fragile economic model of football clubs”, she said.

The tax will only be claimed on income earned in the years 2013 and 2014.

http://www.thelocal.fr/20130930/french-football-clubs-will-pay-75-percent-super-tax

 

[watershed]

Sorry I didn't expound on my comment. Slavik81 understood my intention and was definitely more adept than me at explaining it. Obviously this would only affect people making 1M or more, but it would be a choice of working to go over 1M or taking a vacation once they reach 1M.

I know a lot of physicians who make enough money in six months and either work in a different country to avoid getting taxed a ridiculous amount after they make the cutoff or just take a vacation for half the year.

I don't think anyone is overly concerned with whether or not French millionaires are putting in the hours or not. If you make over 1 million dollars in salary it's also quite likely you have other sources of income from investments. No one is gonna fret that millionaires are losing their work ethic or leaving money on the table and opting to go on vacation.

 

[Kevtones]

Probably beaten but I feel for any pro French athletes on 2-year contracts.

 

[Mael]

http://www.thelocal.fr/20130930/french-football-clubs-will-pay-75-percent-super-tax

Ok this is getting better;
Now politicians need to get taxed on the money they're given too.

 

[Log4Girlz]

http://www.thelocal.fr/20130930/french-football-clubs-will-pay-75-percent-super-tax

Why are they capping the amount? Everyone should pay their fair taxes. If that kills off sports clubs, then so be it.