French Government Plunders Private Wealth
French Government Plunders Private Wealth
Source: CNBC
A socialist agenda often makes no rational and sustainable sense. The most recent example of this is in France where households were taxed more than a year’s worth of income.
A recent article by CNBC noted, that more than 8,000 French households’ tax bills topped 100 percent of their income in 2012, according to a French newspaper report.
Citing data from France’s finance ministry, the business newspaper Les Echos reported on Friday that in addition to those taxed at over 100 percent last year, almost 12,000 households paid taxes worth more than 75 percent of their 2011 income and that a further 9,910 households were taxed at more than 85 percent of their income according to CNBC.
The paper said this was due to a one-off levy imposed on the 2011 incomes of households with assets of more than 1.3 million euros ($1.67 million) . The surcharge was introduced by socialist President Francois Hollande in an attempt to offset the cost of a rebate scheme and taxation cap introduced by former President Nikolas Sarkozy, the paper added.
“In 2011, 5,221 households had a tax rate of more than 100 percent on their revenues, Some 6,203 households had a rate of more than 85 percent and 6,343 households a rate of more than 75 percent,” the newspaper said but households could take advantage of a “tax shield” introduced by Sarkozy to cap an individual’s overall taxation at 50 percent of their income.
Last year, for the first time in 25 years, Les Echos reported, that cap was removed which “substantially increased [the tax rates’] impact.”
This is a dramatic attack on Private Wealth and democracy as a whole. Taxation is the number one factor working against your wealth creation. While we may not have the same problems as the French, if you fail to plan appropriately for the impact tax can have on your wealth, then you almost certainly put your longer term wealth aspiration at risk.
If you would like more information on how you can secure your long term wealth with effective and yet often simple to understand tax strategies, contact a UGC financial strategist today by calling 03 8657 7640 or email [email protected].
The information contained in this report is General in nature and has been prepared without taking into account your objectives, financial situation and needs.