Menus Subscribe Search

Follow us


Taxing the 1 Percent, With a French Accent

• December 17, 2012 • 4:24 PM

The question Lindsey McCormack posed around the filing deadline for U.S. income taxes last year was, “How high can you tax the rich before they decide to pack up and move somewhere cheaper?”

For Gérard Depardieu, the answer is 85 percent. That’s what the actor says he’s paid the French government over his working life, and the amount that’s spurred him to exit Paris and relocate across the border in tax-friendlier Belgium. For his thrifty pains during a time when France is deeply in the hole, Depardieu has been described as pathetic and unpatriotic by his homeland’s prime minister.

France’s new-ish president, François Hollande, has budgeted a two-year supertax of 75 percent on those making more than a million euros a year (about US$1.32 million at today’s exchange rate). That’s leading a trickle of the’s nation’s 1 percent – folks like Louis Vuitton Moet Hennessy CEO Bernard Arnault–to emigrate or at least threaten it. (For the record, Arnault says his decision to seek dual citizenship in Belgium was not driven by tax concerns …)

Tax exiles have existed for years; think of the Beatles’ “Taxman” or the Stones’ “Exile on Main Street” as their anthems. When McCormack asked her question, for instance,  she was reporting in the context of European soccer stars, who shop their athletic wares with one eye on the field and the other on the spreadsheet.

Depardieu’s unscripted drama also casts a light on the ongoing comedy in the United States, where concerns over the “looming” fiscal cliff – surely our bankruptcy isn’t so extreme as to bar us finding a new Homeric for the cliff – has finally led Republican leaders to consider pushing up tax rates on those making more than a million bucks a year. To compare percentages with Hollande’s cruelest cut, the increased sought by President Obama would send the top rate from 35 percent to 39.6 percent.

Will any of these taxes generate buckets of cash? Possibly not. But they presumably do generate goodwill among those in the lower brackets. As tax historian Joseph J. Thorndike noted in October:

Hollande has defended the new rate as part of his effort to shrink France’s budget deficit. But the new “supertax” is about more than raising money. It is also designed to make a point. “It’s symbolic,” Hollande has said. “It will show an example.”

Indeed, that’s the essential nature of very high rates on very rich people. They aren’t really about raising money, although they can do that pretty well sometimes. Rather, they are designed to make a political statement about fairness and economic justice.

Sacrebleu!

Michael Todd
Most of Michael Todd's career has been spent in newspaper journalism, ranging from papers in the Marshall Islands to tiny California farming communities. Before joining the publishing arm of the Miller-McCune Center, he was managing editor of the national magazine Hispanic Business.

More From Michael Todd

A weekly roundup of the best of Pacific Standard and PSmag.com, delivered straight to your inbox.

Recent Posts

October 20 • 4:00 PM

The Bird Hat Craze That Sparked a Preservation Movement

How a fashion statement at the turn of the 19th century led to the creation of the first Audubon societies.


October 20 • 2:00 PM

The Risk of Getting Killed by the Police If You Are White, and If You Are Black

An analysis of killings by police shows outsize risk for young black males.


October 20 • 12:00 PM

Love and Hate in Israel and Palestine

Psychologists find that parties to a conflict think they’re motivated by love while their enemies are motivated by hate.


October 20 • 11:00 AM

My Dog Comes First: The Importance of Pets to Homeless Youth

Dogs and cats have both advantages and disadvantages for street-involved youth.


October 20 • 10:00 AM

Homophobia Is Not a Thing of the Past

Despite growing support for LGBT rights and recent decisions from the Supreme Court regarding the legality of same-sex marriage, the battle for acceptance has not yet been decided.


October 20 • 8:00 AM

Big Boobs Matter Most

Medical mnemonics are often scandalous and sexist, but they help the student to both remember important facts and cope with challenging new experiences.


October 20 • 6:00 AM

When Disease Becomes Political: The Likely Electoral Fallout From Ebola

Will voters blame President Obama—and punish Democrats in the upcoming mid-term elections—for a climate of fear?


October 20 • 4:00 AM

Coming Soon: The Anatomy of Ignorance


October 17 • 4:00 PM

What All Military Families Need to Know About High-Cost Lenders

Lessons from over a year on the beat.


October 17 • 2:00 PM

The Majority of Languages Do Not Have Gendered Pronouns

A world without “he.” Or “she.”


October 17 • 11:01 AM

How to Water a Farm in Sandy Ground

Physicists investigate how to grow food more efficiently in fine-grained soil.


October 17 • 10:00 AM

Can Science Fiction Spur Science Innovation?

Without proper funding, the answer might not even matter.


October 17 • 8:00 AM

Seattle, the Incredible Shrinking City

Seattle is leading the way in the micro-housing movement as an affordable alternative to high-cost city living.


October 17 • 6:00 AM

‘Voodoo Death’ and How the Mind Harms the Body

Can an intense belief that you’re about to die actually kill you? Researchers are learning more about “voodoo death” and how it isn’t limited to superstitious, foreign cultures.


October 17 • 4:00 AM

That Arts Degree Is Paying Off

A survey of people who have earned degrees in the arts find they are doing relatively well, although their education didn’t provide much guidance on managing a career.


October 16 • 4:00 PM

How (Some) Economists Are Like Doomsday Cult Members

Cognitive dissonance and clinging to paradigms even in the face of accumulated anomalous facts.


October 16 • 2:00 PM

The Latest—and Most Mysterious—Player in the Nasty Battle Over Net Neutrality

As the FCC considers how to regulate Internet providers, the telecom industry’s stealth campaign for hearts and minds encompasses everything from art installations to LOLcats.


October 16 • 12:00 PM

How Many Ads Is Too Many Ads?

The conundrum of online video advertising.


October 16 • 11:00 AM

Unlocking Consciousness

A study of vegetative patients closes in on the nature of consciousness.


October 16 • 10:00 AM

The False Promises of Higher Education

Danielle Henderson spent six years and $60,000 on college and beyond. The effects of that education? Not as advertised.


October 16 • 8:00 AM

Faster Justice, Closer to Home: The Power of Community Courts

Community courts across the country are fighting judicial backlog and lowering re-arrest rates.


October 16 • 6:00 AM

Killing Your Husband to Save Yourself

Without proper legal instruments, women with abusive partners are often forced to make a difficult choice: kill or be killed.


October 16 • 4:00 AM

Personality Traits Linked to Specific Diseases

New research finds neurotic people are more likely to suffer a serious health problem.


October 16 • 2:00 AM

Comparing Apples to the Big Apple: Yes, Washington, D.C., Is More Expensive Than New York City

Why shouldn’t distant locales tied to jobs in the urban core count in a housing expenditure study?


October 15 • 4:00 PM

Why Asian American Parents Are the Least Likely to Spank Their Kids

Highly educated, middle-class parents are less likely to use corporal punishment to discipline their children than less-educated, working-class, and poor parents.


Follow us


Love and Hate in Israel and Palestine

Psychologists find that parties to a conflict think they're motivated by love while their enemies are motivated by hate.

How to Water a Farm in Sandy Ground

Physicists investigate how to grow food more efficiently in fine-grained soil.

Unlocking Consciousness

A study of vegetative patients closes in on the nature of consciousness.

Advice for Emergency Alert Systems: Don’t Cry Wolf

A survey finds college students don't always take alerts seriously.

Brain’s Reward Center Does More Than Manage Rewards

Nucleus accumbens tracks many different connections in the world, a new rat study suggests.

The Big One

One company, Amazon, controls 67 percent of the e-book market in the United States—down from 90 percent five years ago. September/October 2014 new-big-one-5

Copyright © 2014 by Pacific Standard and The Miller-McCune Center for Research, Media, and Public Policy. All Rights Reserved.