Tax hikes force French rich to leave - Gayo Lues

The 75-percent tax proposal that has been introduced by Francois Hollande’s government has caused outrage and concern among the French high earners, The New York Times reported on Tuesday.

According to the report, many of the companies in France are studying emergency plans to move high-paid executives outside of the country.

This comes as some of the wealthy people and executives have already packed up for several destinations taking their taxable income with them.

There are also companies that are reportedly delaying plans to invest in France or to move employees or hire new people in the country.

The report adds that, there are few people in France, an estimated 7,000 to 30,000 in a country of 65 million, whose income would be included in the new tax plan.

Francois Hollande’s proposed plan, which will be considered by the French parliament in September, aims to tax any income above 1 million euros per year at 75 percent.

However, experts believe that France’s economic problems and debts will not be solved by imposing a 75-percent tax on the rich.

The Bank of France warned on Wednesday that the European state is set to head toward recession in the third quarter of the current year as the eurozone continues to grapple with economic woes.

The bank predicted that Paris is likely to enter recession in the third quarter of the year as its economy is expected to contract by 0.1 percent for the second quarter in a row.

TNP/SS