The Eternal Lightness of French Taxes
In an article in this morning’s Le Monde relating to a french rocker’s (Johnny Hallyday) defection from France to Switzerland for fiscal reasons, a new poll and analysis has been released. Among the notable factiods contained therein:
- 29% of the owners of french enterprises with less than 20 employees have thought of leaving France because of the weight of the tax structure on businesses.
- 68% of these same people ‘fully understand’ why Johnny left France, and ‘would do the same thing in his place”.
- The total ‘charge fiscal’ in France, ie, the percentage of annual private production that is transferred to the state in the form of taxes is 44% (EU average 39%).
- Although the highest tax bracket on personal income tax has dropped from 48% to 40% over the last 5 years, the total weight of taxation has increased, as taxes on businesses and new social charges have more than taken up the slack.
I mention all this because as much as I love the ‘art de vivre’ in France and appreciate that I don’t have to lock my doors when I’m away, I have experienced the french attitude toward business first-hand and know it has to change if France’s youngest and brightest are to stop fleeing to friendlier countries in search of livelihood.
