Board 8 > France officially boned.

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JDTAY
05/06/12 12:53:00 PM
#1:


It's gonna be funny to see them fail to balance the budget with a 75% income tax.

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Mershaaay
05/06/12 12:54:00 PM
#2:


XFD French voters

taking a cue from America I guess

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JDTAY
05/06/12 1:11:00 PM
#3:


All those new teachers he hires will probably be offset by the ones he's gonna let retire early. Someone should run the math.

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VincentLauw
05/06/12 1:13:00 PM
#4:


Pensions are ruining europe, definitely considering people will only get older from now

it's one of the social policies I disagree with, and it's a big one

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Djungelurban
05/06/12 1:14:00 PM
#5:


Actually it's only 75% income tax for income above a certain amount... I think 1 million euros/year... And if you seriously need an annual salary like that you need to change your lifestyle...

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foolm0ron
05/06/12 1:15:00 PM
#6:


From: Djungelurban | #005
Actually it's only 75% income tax for income above a certain amount... I think 1 million euros/year... And if you seriously need an annual salary like that you need to change your lifestyle...


Those guys are gonna use tricks and loopholes to avoid paying taxes on their money, though, so only the middle class will be affected badly

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Ultimaphazon
05/06/12 1:17:00 PM
#7:


I don't care for Hollande, but Sarkozy was garbage and I'm glad to see him go.

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X_Dante_X
05/06/12 1:19:00 PM
#8:


sorry fool he's one step ahead, he's closing all loopholes at a max of 10k/year

somehow

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Djungelurban
05/06/12 1:22:00 PM
#9:


From: foolm0ron | #006
Those guys are gonna use tricks and loopholes to avoid paying taxes on their money, though, so only the middle class will be affected badly


Pretty sure you're not "middle class" anymore if you're even close to that number. I'm not even sure anything 6 digits is really "middle class" either... Very upper middle class in that case... Guess that's semantics though...

But yeah, I do have a feeling the number of people earning 999999 euros per year is gonna grow substantially in France...

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masterplum
05/06/12 1:26:00 PM
#10:


People who make a million a year know how to get out of it. This will never bring in enough money to cover expenses

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voltch
05/06/12 1:54:00 PM
#11:


80% turnout woo!

Glad to have been part of it.

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XIII_rocks
05/06/12 1:55:00 PM
#12:


Silly French.

Now and forever, we can laugh at them.

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voltch
05/06/12 1:56:00 PM
#13:


UK Local elections though.

less than 1/3rd voted which i find shocking.

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foolm0ron
05/06/12 1:57:00 PM
#14:


From: Djungelurban | #009
Pretty sure you're not "middle class" anymore if you're even close to that number.


So the middle class is gonna have 5% income tax? No, they are gonna have a way higher income tax too.

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Djungelurban
05/06/12 2:01:00 PM
#15:


Pretty sure the income tax in France was never 5%... Not even close...

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foolm0ron
05/06/12 2:02:00 PM
#16:


Okay let me try to put this as simply as possible so you won't miss my point:
Middle class will have high taxes

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voltch
05/06/12 2:02:00 PM
#17:


Income tax in france has always been very high.

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UberPyro64
05/06/12 2:25:00 PM
#18:


I thought counties have been boning France for years.
external image

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JDTAY
05/06/12 2:50:00 PM
#19:


I hear all the rich people will be moving out of France.

There's a loophole you can't close.

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X_Dante_X
05/06/12 2:52:00 PM
#20:


Suddenly insurmountable fences are placed all around france, and anyone who makes over a certain amount of money is not allowed to leave

paid for by the rich, of course

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Djungelurban
05/06/12 4:02:00 PM
#21:


From: voltch | #017
Income tax in france has always been very high.


This

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XIII_rocks
05/06/12 4:03:00 PM
#22:


Can we just keep saying "lol france" or "lol the french"?

I find that's much more interesting and fun than debating taxes and mathematics.

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DeathChicken
05/06/12 4:14:00 PM
#23:


Don't worry, Germany will eventually buy France out like they did Greece, and *nothing* can go wrong with Germans taking over all of Europe

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JDTAY
05/06/12 4:27:00 PM
#24:


Well, at least when the Germans take over Europe, their finances will be put in order.

Plus, schnitzel for everyone! It's win-win.

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TheConductorSix
05/06/12 4:35:00 PM
#25:


I wanna tell some Jewish joke here but they take that ish so personally.

Anywho, China has to be eating this up. The West just keeps derping themselves into financial inefficacy.

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Icon Tang
05/06/12 4:41:00 PM
#26:


I assume you're all aware that income over 1 million is taxed at the 75% rate, right? It's not as if one euro boosts you to the new tax bracket.

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Rad Link 5
05/06/12 5:34:00 PM
#27:




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DeathChicken
05/06/12 6:37:00 PM
#29:


We owe all of our debt to China, so it'll be far worse

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IngmarBirdman
05/06/12 6:40:00 PM
#30:


The vast majority of U.S. debt is not held by China... or any foreign country.

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Westbrick
05/06/12 7:18:00 PM
#31:


DeathChicken posted...
We owe all of our debt to China, so it'll be far worse

How? We're China's major trade partner, so it's in their best interest to make sure we're economically healthy.

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WhoopsyDaisy
05/06/12 7:19:00 PM
#32:


Without knowing anything on this topic, it sounds like there's a 75% marginal income tax on money over €1,000,000. What that means is that every euro OVER €1,000,000 gets taxes 75%, not that every euro OF someone who makes more than €1,000,000 gets taxed 75%.

Let's say that someone who makes €999,999 pays 450k in taxes. If you make €1,000,000, you don't pay €750,000 in taxes, you pay 75% of the euro in that tax bracket on top of the 450k, or €450,000.75.

Hope that clears the air.

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MRNlCEWATCH
05/06/12 7:44:00 PM
#33:


it seems a lot of people on facebook/etc are automatically flipping s*** bc of the socialist label. their have been multiple socialist french heads of state in the past century and it didnt end the world

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SmartMuffin
05/06/12 7:46:00 PM
#34:


From: WhoopsyDaisy | #031
Without knowing anything on this topic, it sounds like there's a 75% marginal income tax on money over €1,000,000. What that means is that every euro OVER €1,000,000 gets taxes 75%, not that every euro OF someone who makes more than €1,000,000 gets taxed 75%.

Let's say that someone who makes €999,999 pays 450k in taxes. If you make €1,000,000, you don't pay €750,000 in taxes, you pay 75% of the euro in that tax bracket on top of the 450k, or €450,000.75.

Hope that clears the air.


And we all know that massive crippling tax burdens on the wealthy and corporations have no effect on their economic behavior whatsoever.

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Ayuyu
05/06/12 7:47:00 PM
#35:


From: MRNlCEWATCH | #033
it seems a lot of people on facebook/etc are automatically flipping s*** bc of the socialist label. their have been multiple socialist french heads of state in the past century and it didnt end the world


Yeah but were in 2012! It's like the last year, people don't want to die as communists!

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foolm0ron
05/07/12 12:38:00 AM
#36:


From: MRNlCEWATCH | #033
it seems a lot of people on facebook/etc are automatically flipping s*** bc of the socialist label. their have been multiple socialist french heads of state in the past century and it didnt end the world


You know who was socialist?

Hitler

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Vlado
05/07/12 12:48:00 AM
#37:


The French made the better choice for their country. I, for one, applaud them for it.

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Senjougaharaism
05/07/12 12:57:00 AM
#38:


Getting rid of Sarkozy is a good thing. Well done France.

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red sox 777
05/07/12 1:11:00 AM
#39:


And we all know that massive crippling tax burdens on the wealthy and corporations have no effect on their economic behavior whatsoever.

It's more true than you might think. The elasticity of work is probably closer to 0 than you think. Are you actually going to work less because you get taxed more? No, because I still make more money when I work more.

The elasticity of investment relative to taxes is probably higher however. And the reason is that investments can go bad, so you need enough of a reward to justify the risk, and taxes lower that reward, without mitigating the risk. Unless you have the government give handouts for capital losses.

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red sox 777
05/07/12 1:16:00 AM
#40:


I'm rather uncomfortable with a marginal tax rate above 50% though. Psychologically, there's something significant about giving the government a greater share of your earnings than you get to keep yourself.

And even tax rates of 50% should not be approached until we get really really high incomes. At least 1 million USD, probably more like 10 million. For people who only make 250k a year, even a 35% tax rate is a major burden that significantly impacts their economic decisions. For example, should I become a doctor or not? A 35% tax rate at the 250k level is sufficient to have a major chilling effect on people's willingness to attend medical school. This is in large part the same reasoning for why investments should receive a lower tax rate than work.

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IngmarBirdman
05/07/12 1:21:00 AM
#41:


Are you actually going to work less because you get taxed more? No, because I still make more money when I work more.

Well, maybe? Could be it isn't worth the time to work more when the marginal tax rate is too high. So you furlough your employees and take the rest of the fiscal year off. Bad for the working class.

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Djungelurban
05/07/12 3:15:00 AM
#42:


From: foolm0ron | #036
You know who was socialist?

Hitler


No, he was pretty much smack in the middle ideologywise... And in any case, his fascism and desire rule everything and exterminate anything that bugged him pretty much superseded every other belief he had...

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VincentLauw
05/07/12 4:28:00 AM
#43:


From: MRNlCEWATCH | #033
it seems a lot of people on facebook/etc are automatically flipping s*** bc of the socialist label. their have been multiple socialist french heads of state in the past century and it didnt end the world


^

I may disagree with some socialist policies but overall I'm still more inclined to agree with Hollande than Sarkozy

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Vishje3000
05/07/12 5:00:00 AM
#44:


The Sarkozy-Merkel bond was the only thing keeping Europe alive... This is going to be under enormous pressure now... Especially in combination with the disastrous elections in Greece... Europe is screwed :-(
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SmartMuffin
05/07/12 6:12:00 AM
#45:


It's more true than you might think. The elasticity of work is probably closer to 0 than you think. Are you actually going to work less because you get taxed more? No, because I still make more money when I work more.

No, but you might move yourself (or more likely your corporate headquarters) over to Switzerland, which is right ****ing there...

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Djungelurban
05/07/12 7:10:00 AM
#46:


Europe will definitely outlast the US atleast...

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red sox 777
05/07/12 10:00:00 AM
#47:


Well, maybe? Could be it isn't worth the time to work more when the marginal tax rate is too high. So you furlough your employees and take the rest of the fiscal year off. Bad for the working class.

Not a problem if the investment tax rate is low. As CEO, you are paid more if your company does well because the company's stock is worth more, and you own stock in the company, or are rewarded with stock options. On the other hand, CEOs can be and are paid huge salaries even if the company tanks. There doesn't have to be a correlation between company performance and CEO pay on the salary side.

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Mershaaay
05/07/12 10:04:00 AM
#48:


XFD Europe

This is what you get for forming the EU

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Kinglicious
05/07/12 10:17:00 AM
#49:


Gonna laugh so hard if this ends up helping them out. It's an interesting experiment to watch and I ain't doomsaying without seeing how it pans out.

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