Rich Frenchmen might emigrate rather than pay Hollande's tax

This New York Times story on the possible mass flight of the rich from France is an eye opener. A chill is wafting over France's business class as Mr. Hollande, the country's first Socialist president since Fran├žois Mitterrand in the 1980s, presses a manifesto of patriotism to "pay extra tax to get the country back on its feet again." The 75 percent tax proposal, which Parliament plans to take up in September, is ostensibly aimed at bolstering French finances as Europe's long-running debt crisis intensifies. But because there are relatively few people in France whose income would incur such a tax -- an estimated 7,000 to 30,000 in a country of 65 million -- the gains might contribute but a small fraction of the 33 billion euros in new revenue the government wants to raise next year to help balance the budget. The French finance ministry did not respond to requests for an estimate of the revenue the tax might raise. Though the amount would be low, some analysts note...(Read Full Post)