France's Rich Go Galt

France's Rich Go Galt

Upon election, French President Francois Hollande quickly signaled he would raise taxes on the wealthiest citizens of France. And although he didn’t use Obama’s exact words, his intent was clear: it’s time for the rich to pay their fair share. The rich got the message and have begun an exodus from France.

Some of the proposed tax hikes include a 75% tax rate on all earnings over one million euros, 45% (up from 41%) on all incomes over 72,000 euros, and higher taxes on second homes as well. In essence, Hollande is planning to squeeze even more money out of the producers in his country so that he can use that money to fund his government and feed the masses that have grown accustomed to cradle-to-grave social services.

British Prime Minister David Cameron wisely reacted to Hollande’s proposals by announcing that he would love to have wealthy French citizens make their new homes in Britain, where taxes are lower. Whether the wealthy take Cameron up on his offer remains to be seen, but one thing’s for sure: the rich in France are already paying more than their fair share, and they’ve been doing so for quite some time. 

Now they’re leaving, and they’re taking their money with them.