Emmanuel Macron to introduce new tax on expensive jewellery, supercars and luxury yachts

[Sunlei]

Source: Independent

The idea of the wealth tax reform was that there should not be a brake on contributors to economic production, that we suppress taxes that deter investors," Richard Ferrand, leader of the Republic on the Move parliamentary group, told Ouest France.

"Taxing real estate wealth is compatible with this, but goods such as yachts, luxury cars or precious metals do not contribute to the productive economy either."

Lawmakers will propose amendments after critics attacked the President’s move to scrap the wealth tax in France.

Mr Macron abolished the tax, which has been seen as a symbol of social justice for the left but blamed by others for driving thousands of millionaires abroad.


Read more: http://www.independent.co.uk/news/world/europe/france-wealth-tax-emmanuel-macron-supercars-luxury-yachts-jewellery-a7989156.html

[SunSeeker]

1. Yup, they sure as fuck do not contribute to the productive economy.

[rzemanfl]

2. Oh damn. I was planning on moving to the South of France and buying all that stuff.

I never get to have any fun!

[TreasonousBastard]

3. We tried that, I think it was under Carter, but...

it turns out the rich don't need to buy yachts or jewelry, so they just stopped buying.

[sandensea]

4. It was rescinded by Clinton in '93 as an olive branch to the rich - but the tax raised $8.9 billion.

Just $97 million (1%) short of its projected revenue haul.

[napi21]

5. I remember that. Didn't last very long. Those who could afford those things simply put off

buying them. There was so much whining about "loosing our business" they repealed the law.

[PoindexterOglethorpe]

7. The tax needs to be reinstated.

They can only postpone such purchases for a while, and then they'll succumb. They NEED yachts and expensive jewelry and the like.

I'm remembering some years ago, around 1978, standing in line at the DMV to renew my car registration/license, and listening to the woman in front of me complain bitterly about the cost of registering their boat. It wouldn't have been a yacht, just a small boat that many people might own. But all I could think of was, "If you can't afford this relatively trivial tax, you can't afford the boat."

For what it's worth, one of the reasons I'm postponing replacing my 2004 Honda Civic, is that I know my car insurance will increase. I will contact my insurance company to find out how much whatever newer car I'm considering will cost to insure, but it is a factor.

I'm also retired, living on SS, a tiny pension, and savings, so I really do watch every penny.

[DFW]

6. With the EU, this is a meaningless gesture to make the have-nots cheer

As long as the EU law of "free movement across EU borders of people, capital and goods" remains in effect, and EU law supersedes national law, any such local tax can be avoided by buying yachts in Monaco or Italy, and cars in Germany. There is a difference between just "precious metals" and jewelry. Dealers in precious metals usually have a margin of 1% or less, and make their money in high volume. Jewelry stores usually mark their stuff up by 50% to 100% or more. EU law already exists exempting most common gold bars and coins from any tax, which makes sense, since any tax would exceed the dealer's margin by several hundred per cent, and force all dealers either out of business or to a neighboring country.

The Wealth Tax kicks in in France at about €1.3 million, a ridiculously low threshhold, and art was excepted, since the father of the socialist minister who introduced it under Mitterand was an art dealer. So, you paid if the value of your family's land went up, but not if you put $€100 million into Rembrandts and Picassos. Germany's Heiner Geissler called this kind of tax a "Neidsteuer," or "jealousy tax." Germany's constitution forbids double taxation anyway, so their Supreme Court struck it down when it was proposed. France, LOVES taxing anything and everything, but people seem to always find a way around it, since the people who write the laws often have their own little niches to protect (e.g. Laurent Fabius' dad, the art dealer). Laws on high ticket items that make sense all around are rarely written, because they require more common sense and research than the parliaments here seems to want to invest in writing them.