The IRS plans to end a major tax loophole for wealthy taxpayers that could raise more than $50 billion in revenue over the next decade, the proposed rule and guidance announced Monday includes plans to essentially stop “partnership basis shifting” — a process by which a business or person can move assets among a series of related parties to avoid paying taxes.
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Vive le…. TAX?
The French Socialist government confirmed a 75% tax rate for top earners and a new 45% ‘band’ for revenues over 150,000 euros.
Businesses are targeted as well. Loan interest tax deductions have been reduced and a capital gains tax break has been eliminated. These respective cuts have taken €4 and €2 BILLION out of the hands of business and placed them into government coffers.
“France is sick because of the model it has … but is choosing to preserve it.” says Guillaume Cairou, Head of the Entrepreneurs Club.
French President elect is already making U.S. business uneasy.
Francois Hollande has said he will make it “extremely expensive” for businesses to sack French workers.
U.S. businesses employ 800,000 French, and General Motors are looking at closing a large plant in eastern France. At a time when the French economy is struggling, Hollande should make France attractive to foreign investors. France is already famous for it’s powerful unions, who bring the country to a standstill with their frequent strikes.
Standard and Poor downgraded France last year, claiming restrictive labour laws as one of the reasons. Hollande will only make feelings worse, creating an anti-enterprise environment, alienating foreign investment.