France's 75% tax...

[Crashdummy]

Austerity cuts only makes the recession bigger.

Countries dont leave a recession by cutting its expenses, what they need to do is use the loans they get to inject money in the market by spending more instead of using those loans to give the money to the banks.

USA didnt cut expenses in the 30's crisis.

The ones doing the wrong thing are Greece and Spain, not France.

If you want to leave a recession, you need to spend more, not cut expenses.

Those that have more money are the ones that benefit the most in good times, so its fine if they have to pay more in rainy days.

Again, good job for France, they have a better chance of leaving the Crisis than Greece and Spain.

[Reeve]

Money doesn't 'stay out' of the economy even if you keep them in a bank. The bank uses the money a rich guy keeps to fund other people who want to start businesses, buy houses, cars and so on. This is just socialist propaganda. Use your head before you make silly statements. A government instead takes that money and does nothing productive with it in most cases

I find it incredibly ironic that you suggest that money in banks is always productive, but money in the hands of the government usually isn't.

Investment is good. Money in banks results in greater access to capital for business owners and entrepreneurs. But in order for business owners/entrepreneurs to start/expand businesses, there needs to be demand. Right now, interest rates are at all time lows. That means there's already tons of access to capital. Adding more won't help much. What we need is more aggregate demand, which is something government spending adds to.

[Mnevis]

Money doesn't 'stay out' of the economy even if you keep them in a bank. The bank uses the money a rich guy keeps to fund other people who want to start businesses, buy houses, cars and so on. This is just socialist propaganda. Use your head before you make silly statements. A government instead takes that money and does nothing productive with it in most cases

Well, the first two sentences there are true, but it's also true that social spending on the not-so-wealthy is much more effective and efficient at stimulation of an economy. I'm no economist, but I think the whole Keynesian thing is if you give someone a job paving a road or give a poor mother money to spend on food, that money goes right back into spending. It will end up in the business owner's bank account eventually, but in the process goods and services must be created, rather than if you simply prioritize leaving it in the business owner's bank account in the first place.

If there's relatively low consumer demand and increasing efficiency (corporate efficiency, not national; we're wasting huge human capital right now), as in the last decade, then the wealthy keep accumulating the money, but the market simply does not create jobs. This may be something that ideologically one agrees is just, but it does not follow that it is in the interests of the country, and that is the mandate of the government.

*if you follow the link to the CBO report, the summary chart of various types of programs is on page 30. I'm not at all sure how you think government spends money on nothing productive, when even saving it is defined as productive so long as it's a private citizen doing it. I suppose the only 'productive' spending the government does is paying companies to make tanks and bombs? Afterall, government taking over our industry and turning it up to 11 to fight WWII is what really finally got us out of the Great Depression. We made some really good progress towards paying that debt off too, until 1981.

[Puremallace]

Austerity cuts only makes the recession bigger.

Countries dont leave a recession by cutting its expenses, what they need to do is use the loans they get to inject money in the market by spending more instead of using those loans to give the money to the banks.

USA didnt cut expenses in the 30's crisis.

The ones doing the wrong thing are Greece and Spain, not France.

If you want to leave a recession, you need to spend more, not cut expenses.

Those that have more money are the ones that benefit the most in good times, so its fine if they have to pay more in rainy days.

Again, good job for France, they have a better chance of leaving the Crisis than Greece and Spain.

Our worst President EVERRRRR Hoover did austerity actually right after the Depression hit and just made it 10 times worse. I think 25%+ unemployment rates pretty much prove this Republican/Conservative idea of cutting government during a recession should be treated like treason.

If Romney gets elected and does these Austerity cuts just watch how fast we nose dive past recession right into a depression.

[chadwix]

Anyone know if vivendi is moving? Dont see how a company that size could survive paying 75%.

[Reeve]

Anyone know if vivendi is moving? Dont see how a company that size could survive paying 75%.

It's a personal tax rate, not a corporate tax rate. The vast majority of people working for Vivendi aren't going to hit that bracket.

[Deleted]

It's hard not to bash the whole country now but yes, it's pretty retarded...

I laughed when i saw were you live LOL

So much BULLSHIT in this thread it's unbelievable.

People talk about something they don't know anything about. This tax will be applied to something like 10 000 person in the entire country

I'm not for this tax, i'm more against, but people just take this occasion to bash one more time France, it's just ridiculous.

[chadwix]

So tax the people and not big business? Isnt that something people constantly complain about america for, is it the same over there?

[Crashdummy]

Anyone know if vivendi is moving? Dont see how a company that size could survive paying 75%.

As many have said already no one would be paying 75% of the total, the 75% is applied after the first 1.3M euros and ONLY to the money you earn after that amount.

So if you earn 1.300.001 euros a YEAR you would be paying 75% of only 1 euro, and the normal taxes for the other 1.300.000

[Deleted]

Our worst President EVERRRRR Hoover did austerity actually right after the Depression hit and just made it 10 times worse. I think 25%+ unemployment rates pretty much prove this Republican/Conservative idea of cutting government during a recession should be treated like treason.

If Romney gets elected and does these Austerity cuts just watch how fast we nose dive past recession right into a depression.

Did not know that with Hoover, thought New Deal etc came right after the depression. But reminds me of our second-worst Chancellor ever, Brüning, and his extreme austerity from 1929-1932, who buried democracy and paved the way for the worst, as Hitler economically was sane. Golden Dawn in Greece is on a good way to repeat that history.

[Reeve]

So tax the people and not big business? Isnt that something people constantly complain about america for, is it the same over there?

If anything, it makes more sense to tax people than businesses. Corporate profits shouldn't be taxed if they aren't being taken out of the company. We want to encourage companies to reinvest their money into expansion and greater job creation. If they're taking the profits out of the companies in the form of dividends or huge salaries/bonuses for execs, that doesn't spur growth, and should be taxed.

[Deleted]

Since that 75% tax only applies to the part above 1mil € unless you annually earn way above that (and live in France) the new tax shouldn't matter. Did a quick search to find out the current situation and if you earn above 69k € you already pay 41% tax (on everything above that amount) so they only plan to add another tier it seems?

In the first place this new tax isn't something someone with common income should be upset about (honestly they should be happy about it since it on paper lessens the income gaps), guess the only downside is that rich people may decide to move away thus leaving France with less tax income rather than more.