The most crazy pre-election promise of Francois Hollande is on its way. A super tax of 75% on so called "rich" is to be imposed. At the same time the richest Frenchmen Bernard Arnault applied for a Belgium citizenship. Hundreds of French wealthy people had already been invited by the British Prime Minister to come to the United Kingdom. And Brits are already joking with French that they can't keep their millionaires.

Obviously neither Mr Hollande, nor anyone of its team has red "Atlas Shrugged" novel. If red they would know that they are creating a classic "John Galt" situation of decapitating the society by expelling the active and initiative people. Just instead of going to the secret Galt Gulch, they will simply emigrate.

French taxes were not low even up to now. But with this 75% the situation becomes ridiculous. This tax simply means it is forbidden to have an income of over 1 million Euros. OK. But in fact the economy needs people with such incomes. The economy needs greedy entrepreneurs to establish enterprises and create jobs. The society does not need millions of millionaires. But it needs enough of them. A 75% income tax is a millionaire-killer, i.e. an economy destructor.

Like any socialist Mr Hollande obviously believes rich men are some type of parasites and their wealth is stolen from ordinary people. But in fact without them the wealth will not exist, so there will be nothing to perceive as "stolen"...

Generally rich men are rich because they are more clever that the rest. So they are more clever than the tax officers too. For the rich are working armies of lawyers and accountants. So the rich are already ready for the new tax. They know how not to pay it. But even if there was no way of tax-escape this would not mean a tax income. Much people would simply decide not to work for more than 1 million per year. So the only result will be a destruction of the business?

 The tax must be acceptable for the tax-payer to exist. There is no way a man to work only for paying taxes. So a balance is needed. The welfare state has created much consumers and less real producing people. The factories are closing, jobs are fleeing. And in this situation, Mr Hollande invented a 75% tax. Instead of cutting costs he will cut the heads of wealth creators...

 All this will lead to a Second French Revolution one day. When the army of state officers, social payment receivers and pensioners remain alone in France with nobody to work and feed them, nothing else will remain as option, than to explode another revolution and decapitate the King...

Dobri
September 10th 2012