Moving Sale: A Château on the Cheap?

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    Nov 23, 2012 8:56 PM GMT
    http://online.wsj.com/article/SB10001424127887324556304578123224162744636.html?mod=WSJ__MIDDLENexttoWhatsNewsTop

    The French are fleeing. A spate of proposed tax hikes is leading hundreds of wealthy French to consider leaving the country and putting their homes on the market, real-estate agents say. The result: the best opportunity in years for foreigners to buy a Parisian pied-à-terre or country château.

    The number of high-end homes on the market has increased, with sales due to expatriations skyrocketing this year to several a week from a few a month, says Charles-Marie Jottras, president of leading luxury brokerage Daniel Féau. Fiscal expats account for more than half of the homes Daniel Féau lists between $6.4 million and $19.2 million, compared with about 10% in prior years. [...]

    Flush French are fleeing the new government's attempts to repair France's public finances by increasing taxes on salaries, capital gains and household wealth. Among the controversial proposals in the 2013 draft budget is a 75% tax rate on salaries higher than $1.3 million, up from less than 50% currently. "Wealthy French are not that masochistic," says Mr. Jottras. The proposed taxes apply only to primary residents of France, however; those who buy a property as a vacation home and spend less than half the year in France will not be affected.
  • coolarmydude

    Posts: 9190

    Nov 24, 2012 3:44 PM GMT
    Among the controversial proposals in the 2013 draft budget is a 75% tax rate on salaries higher than $1.3 million, up from less than 50% currently.

    I would agree that 75%, even the 50% is too high. But considering that riddler is posting this story, I'd like to remind people that we American liberals prefer the tax rate for this income bracket be less than 40%, but more than 36%.

    So the moral of this story coming out of France is that even the French were comfortable with less-than-fifty-percent tax rates.