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French President announces pro-business measures

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Re: French President announces pro-business measures

#61

Post by speeq »

claudius wrote: post #39
ekianjo wrote: post #23

Earlier quoted context omitted.

Well that's still far high enough even at 36%. There are several places more business-friendly around the world.

> There are several places more business-friendly around the world. Sure. There are also several places with much worse infrastructure around the world. If you don’t want to pay taxes, go to Somalia.

What about places like UAE? The Dubai "Internet City"- Free Trade Zone offers absence of corporate and personal income taxes or customs duties, as well as free repatriation of capital and profit in any currency. I'd say, if you don't want to pay taxes, go to Dubai.

Re: French President announces pro-business measures

#62

Post by unexpected »

LekkoscPiwa wrote: post #53
stygianguest wrote: post #20

Earlier quoted context omitted.

Of course that only applies to the salary over one million. As people earning that much usually have plenty of options to get their money through different channels, this is purely political posturing. They didn't even significantly increase tax revenue. I agree that it is ridiculous but, in a similar way, it is ridiculous to claim that one rate makes France unfriendly for business.

> Of course that only applies to the salary over one million. Of course! So have a look at me: worked 8 years in IT and saved about 150,000 USD in that time period. I paid taxes on this, mind you. To save this amount I had to live on much lower standard of living that my peers. My wife and my kid too. I quit the job, I'm trying to run a startup. I have a child, a wife and expenses related to that. Instead of getting…

If you sold the business, this would not be a salary - this would be a capital gains transaction.

Re: French President announces pro-business measures

#63

Post by poub »

rikacomet wrote: post #5
tekahs wrote: post #2

From a french guy : We are so late on this. imo, it's just an adjustment compare to other country (like US). There is also a lot to do to change the mentality, because the crowd don't believe in "entrepreneurship" and prefer to work directly in big company.

from a Indian guy, planning on coming to France for Higher Studies: France is sprinting now, when others are exhausted (USA, UK, China, India).. France is where it is right now.

This is an interesting point of view and that it’s not the first time I’ve heard it (especially from indian students who were wondering if they’ve made the good choice coming in the UK instead of France).

However the only trouble on those stories is they were describing France a bit too much like California.

That said many foreigners usually do see opportunities when locals are just blind.

So if there is any attractiveness to France seen by Indian people who believe they can leverage those opportunities, this should be welcomed and probably rewarded too.

Re: French President announces pro-business measures

#64

Post by jacquesm »

When French entrepreneurs move to Berlin and London to work on their companies you know you have a problem.

France's capital gain taxes are a real issue, and even the new, changed and improved rates will not do much to counteract this.

And that's just one of the things working against French entrepreneurs, the various employment laws don't help a whole lot either.

It would be fair to class France as start-up hostile at the present date, but the situation is improving. Which gives me all the more respect for those French entrepreneurs that succeed.

Re: French President announces pro-business measures

#67

Post by LekkoscPiwa »

lke wrote: post #60
LekkoscPiwa wrote: post #53

Earlier quoted context omitted.

> Of course that only applies to the salary over one million. Of course! So have a look at me: worked 8 years in IT and saved about 150,000 USD in that time period. I paid taxes on this, mind you. To save this amount I had to live on much lower standard of living that my peers. My wife and my kid too. I quit the job, I'm trying to run a startup. I have a child, a wife and expenses related to that. Instead of getting…

What don't you understand in "over one million" ? If you sell it for 1,000,001 the 75% rate only applies to the extra 1. Not the whole 1,000,001 just the 1 that is over the million. That's what is called a marginal taxe rate. Each tax braket only applies to the money within the backet range. If you make 1,000,001 the first 6,000 are not taxed and the last one is taxed at 75%. (Or will be if we ever get that). -- Edit…

True. But the first million is not tax free neither. If over 1,000,000 is 75% then I'd assume that below 1,000,000 isn't much better. I'd assume if I sell for 2,000,000 the total tax will be at least 50%. How is this fair?

Re: French President announces pro-business measures

#68

Post by claudius »

speeq wrote: post #61
claudius wrote: post #39

Earlier quoted context omitted.

> There are several places more business-friendly around the world. Sure. There are also several places with much worse infrastructure around the world. If you don’t want to pay taxes, go to Somalia.

What about places like UAE? The Dubai "Internet City"- Free Trade Zone offers absence of corporate and personal income taxes or customs duties, as well as free repatriation of capital and profit in any currency. I'd say, if you don't want to pay taxes, go to Dubai.

Wasn’t there a thread here recently how it took them until 2010 to build a second sewage plant and still have to haul their shit away in trucks?

Re: French President announces pro-business measures

#69

Post by LekkoscPiwa »

qwerta wrote: post #49
LekkoscPiwa wrote: post #10

75% tax rate. He is a sociallist big time. He hates free market economy. Now confronting public outrage he puts some lipstick on a pig and it still doesn't look good as he doesn't get the markets. 75% tax rate, who is he kidding? Who wants to work for free for years on their startup and sacrifice their savings, their social life, sometimes their family, just to be hit by 75% tax at the end of the journey? No thank yo…

75% tax rate is very common in Europe even for workers with average salary. There are many hidden taxes such as 'social security insurance payed by employer'.

or VAT (sales tax) in whereabouts of 20%.

Re: French President announces pro-business measures

#70

Post by wazoox »

LekkoscPiwa wrote: post #53
stygianguest wrote: post #20

Earlier quoted context omitted.

Of course that only applies to the salary over one million. As people earning that much usually have plenty of options to get their money through different channels, this is purely political posturing. They didn't even significantly increase tax revenue. I agree that it is ridiculous but, in a similar way, it is ridiculous to claim that one rate makes France unfriendly for business.

> Of course that only applies to the salary over one million. Of course! So have a look at me: worked 8 years in IT and saved about 150,000 USD in that time period. I paid taxes on this, mind you. To save this amount I had to live on much lower standard of living that my peers. My wife and my kid too. I quit the job, I'm trying to run a startup. I have a child, a wife and expenses related to that. Instead of getting…

> I sell the business after 3 years for 1,000,000 dollars. You are telling me that it is fine to take 750,000 from me and from my family?

You're so very wrong.

1° the 75 % tax doesn't apply if you reinvest the money in a new company. There are several different ways to avoid paying the tax through investment. It's a tax on revenue, earnings, NOT capital. If you use your money as capital, basically you'll never pay more than about 35% taxes overall.

2° you don't understand how marginal tax rates work. You pay 75% of tax on everything ABOVE 1 million. So if you sell your company for 2 millions, the 75% applies on the second million but not the first one.

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