The Instigator
Anara
Con (against)
Tied
0 Points
The Contender
joshieod
Pro (for)
Tied
0 Points

Was it right to fix tax rate of 75% on the income of individuals in France?

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Voting Style: Open Point System: 7 Point
Started: 1/14/2013 Category: Economics
Updated: 4 years ago Status: Post Voting Period
Viewed: 677 times Debate No: 29165
Debate Rounds (3)
Comments (1)
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Anara

Con

Of course, this measure is justified with the condition of world crisis and how it will influence the investment climate, but I think that fixing such kind of high taxes is blatant confiscation of money. I can`t miss that I am struck by the words of budget minister that Now they can hope that with the help of this measure unbearable difference of wage levels,which we see today, would go back in time. This is the words of not literate economist and politic, according to that almost all popullation of France is rich. This changing in tax system was perceived greatly by the supporters of political left-wing that rich people should pay more for completing budget. As for even this is almost discrimination, which has no place to be and by the words of foreign experts this tax on luxury aggravate the situation with the investment. As we know investment is the way to stable and developing economy.
joshieod

Pro

An interesting and highly relevant topic. I accept the challenge for debate and await the challenger's opening statement arguing the reasons against such a tax policy.
Debate Round No. 1
Anara

Con

When we hear the word "taxes", we always feel a headache. It is like a huge luggage, which you should carry on till the end of your life, but we shouldn`t forget that taxes is the answer for the government, which also provides us with all services we need. Then appears a big "But", tax rate of 75% on the income of the individuals, no matter how much money they earn, if that`s not giving money back completely, what is it? It is just whim of the President in order to show the class-mid that he works and tries to "get the country on its feet again". But he didn`t realized consequences of the moment when this tax policy will come to its accomplishment.

First of all, as we know the richest people of France signed in the letter where they agreed to pay more taxes than they have now (as we know in France there is already high tax rate for rich people over 40%). And what was the answer of the President? Of course, after such kind of announcement all these people, who signed, were confused, because it is too high than they expected. After this situation all highest earners of France were planning simply to run away(leave the country). For example:

"One Paris law firm says it has been inundated with calls from wealthy businessmen asking if they should leave France if the socialist President Francois goes ahead with his promise to introduce a 75 per cent tax rate on income above one million euros.

Vincent Grandil, partner of Altexis, which specializes in tax law, admitted his company has been receiving concerned calls from high earners since the French President's tax announcement.

He told the New York Times: 'We're getting a lot of calls from high earners who are asking whether they should get out of France".

Of course, after such kind of announcement about tax rate every citizens of France, who earns money more than 1 million per year or has plan to make a business, without doubt, wanted to leave the country, because there is no reasons to earn money, if government takes it in such amount. There is right example for my argument: "Last week, Pierre Chappaz, a French entrepreneur, wrote online, "I do not know a single start-up founder who accept the idea that creating a company, in which it will invest all his savings and years of effort often without a salary, must then give to the State 60.5 percent of gain when he sells his company if he succeeds." The statement went viral. An online group calling itself Les Pigeons " slang for sucker " has more than 63,000 "likes" on its Facebook page". And this is true.
If this tax policy was accepted, it would influenced the investment, which has important role in France economy and in other countries too, and capital gains what is more negatively, after what it would be reflected on the economy certainly.

Second or I can say last argument (it is small, but suitable) is that the tax would affect around 30,000 workers out of the country's population of 65million, that`s why the purpose of the tax is more populist than mathematical: the marginal income tax increase is estimated to raise only about $300 million. And this sum would change nothing in the difficult situation of France.

I think there is clear that with this tax policy France could lose more than get.
joshieod

Pro

joshieod forfeited this round.
Debate Round No. 2
Anara

Con

Anara forfeited this round.
joshieod

Pro

joshieod forfeited this round.
Debate Round No. 3
1 comment has been posted on this debate.
Posted by brian_eggleston 4 years ago
brian_eggleston
Actually, this tax increased has not yet been passed, and is not likely to be either, but even if it is, it only applies to earnings over EUR1,000,000 (USD814,000) so it's not going to impact most people.

Indeed, people earning that sort of money normally make arrangements to mitigate their tax bill by exploiting loopholes in the law that allows them to transfer their incomes to third party entities located in offshore tax havens (ask me for details, if you like, but I'll have to charge!)

The 75% is no more than a political gesture intended to show the ordinary French people that they are not the only ones making sacrifices in these gloomy economic times, the rich are sharing their share of the burden too (they aren't, but that's not the point).
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