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Curtis Dubay, Heritage Foundation, on French President Hollande’s new plan to tax the country’s wealthiest at a rate of 75%.
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Get this in a bid to fix his country's fiscal house French president Francois Pilon.
Unveiling a budget -- day that'll raise the tax rate on France's top income earners to.
75%.
Notes that he can't even say that phrase 75%.
Individually why -- rates.
Really or why stay in France will this do anything to rein in the country's deficit to the US ever go this far to raise revenues figured away -- -- A senior policy analyst at The Heritage Foundation so you heard our -- -- -- -- not there.
You've already got record unemployment France abroad to data point to economic stagnation of course how can this tax rate not be devastating.
Well there's no doubt it will be about and we should be grateful to France -- the folly.
Of raising tax to the point we are confiscating three quarters of the income earned by your business -- your investors your job creators.
At a time when your economy is in the tank and -- showing us how bad that would believe there will be just as bad here if we go to on the.
-- as well so.
Grateful to France yet a lot of people -- hoping we're gonna go down.
That happening -- to 35%.
Individual income tax rate Curtis and again a lot of people are fearful that if Obama wins reelection that.
That's the path we're headed on so.
What do you expect to happen with tax rates if he's reelected.
Well you know there president bond -- wanna raise taxes I don't think we'll ever go back to rates in the seven -- -- 5% we've been there done that.
I don't think we'll have that that level however again because Obama does want to raise that he wants to go from 35% today.
To above 40% starting next year that would slow the economy.
It would reduce job creation and it would keep us stuck in the slow growth yeah unemployment it's written -- we're -- right now.
Just my backgrounds take our right so here in the US were just at about -- 1% expansion rate.
What is the highest level of income taxes.
You could pay to keep -- in a free enterprise capitalist structure society.
Well you know I think it's hard to -- -- -- of the particular -- Because it depends on the tax base -- -- things however you know right now we're at 35% we have no growth a lot of people points of the Clinton years is that.
You know what we raise taxes -- in the economy grew.
Well go back and look at the world that -- days.
The economy had everything going in its favour right now they come with everything going against it raising Texas now.
-- but I'm based on the logic that we can -- the fact that they have the to the two things don't -- Gordon definitely different timeframe.
I -- capital apparently trying the Mexican you've got a predicted mass exodus so what does that mean for places like -- For instance.
We have -- were already seen as people are what techno how they can quickly moved from France to England or Switzerland or Belgium -- Luxembourg.
They're trying to avoid the tax we see that when states -- -- -- California the giant of their productive people out.
For years Maryland is also engage in that in recent years so.
Wealthy people.
They pick up -- move to to reduce their tax burden we're gonna see that in France going forward and what about the welfare state in -- can't afford that so what happens to the poor people of France.
We don't need -- it's again and we should be agreeable to France for showing us the folly of high -- hasn't -- -- -- welfare states.
They can't afford it -- it's a funding their expensive state.
-- -- just can't tax the wealthy enough to make it work.
Again in and of course it hurts the economy so it only becomes president it's reinforcing downward cycle that we can -- that cycle here as well.
Problems are compounding for Europe and hopefully there won't -- -- into the US which a lot of people are fearful they already are courtesy -- thank you for your time your insights.
