Flight of the French executives continues

posted at 6:01 pm on March 12, 2013 by Erika Johnsen

He’s been in office for less than a year, but the honeymoon phase is already over and Socialist French President Francois Hollande’s approval rating is on the strugglebus. Miraculously, his redistributive financial methods of governance have not managed to revive France’s stagnating economy, despite his campaign pledge to halt the jobs crisis and fight against austerity.

French President Francois Hollande, battling to appease voters as his economic goals recede, loosened a budget target for 2013 on Tuesday but clung to his pledge to end a jobs crisis.

On a two-day trip on Tuesday to eastern France aimed at convincing a sullen public he can restore the economy to health, Hollande admitted that deficit-cutting has been blown off course but said a delayed target was preferable to austerity measures that could stifle economic recovery. …

But Hollande insisted that he can reach his last standing goal, to reverse by end-2013 a rise in unemployment that has taken the rate to a 13-year high of 10.6 percent.

“The right economic strategy is to stay on this track without doing anything that can weaken growth,” Hollande told a meeting in Dijon, capital of the Burgundy wine-making region.

Except that that whole “not doing anything to weaken growth” strategy isn’t performing too well, either, since higher-tax policies don’t typically do much to jump-start the ol’ economic engines. France has been slowly bleeding some of its high-profile high-earners, and the Financial Times reports on fresh evidence of major French business executives looking at leaving the country — and while not everyone will outright say it’s because of tax reasons, there’s little hesitation about dumping on France’s anti-entrepreneurial and uncompetitive business climate.

Two senior executives at Moët Hennessy, the champagne and cognac arm of the LVMH luxury group, are moving to London from Paris and the head of Dassault Systèmes, the software arm of Dassault Aviation, said some senior managers of his company had left and he was considering following suit. …

But Bernard Charlès, chief executive of Dassault Systèmes, was sharply critical of the high tax policies of Mr Hollande’s Socialist government, telling Le Monde newspaper in an interview: “Residing in France has become a big handicap. Very largely, our hiring of top managers will have to be done elsewhere than in France.” …

One person familiar with the matter said other members of the executive board were moving to Singapore and Switzerland.

You can keep on raising taxes to pay for expensive government ventures all you like, but you better expect that people are going to act in their own rational self-interest and do what they can to save more of their own money. Unfortunately, per Drudge, this is a growing phenomenon that lately isn’t restricted to Socialist France:

John Paulson, a lifelong New Yorker, is exploring a move to Puerto Rico, where a new law would eliminate taxes on gains from the $9.5 billion he has invested in his own hedge funds, according to four people who have spoken to him about a possible relocation.

Ten wealthy Americans have already taken advantage of the year-old Puerto Rican law that lets new residents pay no local or U.S. federal taxes on capital gains, according to Alberto Baco Bague, Secretary of Economic Development and Commerce of Puerto Rico. The marginal tax rate for affluent New Yorkers can exceed 50 percent on ordinary income. …

Paulson executives, too, have already taken steps that may allow them to pay lower taxes. Last year, they put about $450 million into a new Bermuda reinsurance company that in turn invested all of its assets in Paulson & Co. funds. The structure positions them to defer any taxes on investment income from the funds for years, and to pay only the lower capital gains rate when they do.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Don’t forget your bagettes!

LeftCoastRight on March 12, 2013 at 6:03 PM

“The structure positions them to defer any taxes on investment income from the funds for years, and to pay only the lower capital gains rate when they do.”

That means that it’s legal, which means it was lobbied for… You think the rich don’t own the tax code and that we don’t need a flat tax badly?

Washington Fancy on March 12, 2013 at 6:05 PM

That means that it’s legal, which means it was lobbied for… You think the rich don’t own the tax code and that we don’t need a flat tax badly?

Washington Fancy on March 12, 2013 at 6:05 PM

Buddy, I’ve paid capital gains taxes on four different occasions. I am 34 years old and I am NOT NOT NOT “wealthy” by any stretch of the definition.

gryphon202 on March 12, 2013 at 6:09 PM

Within months we’ll be hearing about income tax havens and how evil they are for not taxing residents enough.

How soon can we expect French Guiana to advertise the lowest tax rates for new residents?

Money talks. Speeches are just noise.

BobMbx on March 12, 2013 at 6:09 PM

There was a time, long, long ago, such executives, lords and nobles, if you will, would get fed up with high taxes from the government, i.e., King, and do some royal housecleaning which would often be quite personally unpleasant, and throughout the ages oft repeated.

Now the wimps scurry and run off to a safe haven to avoid conflict.

hawkeye54 on March 12, 2013 at 6:10 PM

It’s always amusing to see these Socialists think that raising taxes is not an austerity measure. But, whatever.

DaveDief on March 12, 2013 at 6:11 PM

This is just another lie put forth, no doubt, by some crackpot, conservative, conspiracy theorist blog like Agence France-Presse. Taxes only modify behaviour when they are put on tobacco and sugary drinks, but not fatty foods. They NEVER work on fatty foods because such are based on “outdated assumptions” made three years ago. And, increased taxes never, ever, ever cause taxpayers to modify their behaviour by moving to a more tax-friendly locale. Never. Jamais!

If you want less of something like smoking, you increase taxes.
If you want more of something like tax revenue, you increase taxes.

Erika, please don’t make me have to correct you, de nouveau.

Je suis très fatigué, already!

- bayam

Resist We Much on March 12, 2013 at 6:12 PM

le bummer

DanMan on March 12, 2013 at 6:12 PM

I’ll write in your tax loophole for a healthy contribution to my re-election campaign coffers. Pay no attention when we demagogue the tax loopholes to the public that we wrote in to begin with though.

rightside on March 12, 2013 at 6:13 PM

It’s always amusing to see these Socialists think that raising taxes is not an austerity measure. But, whatever.

DaveDief on March 12, 2013 at 6:11 PM

Raising taxes has been the OVERWHELMING form of austerity measure used in Europe. Those “draconian spending cuts” have been put off indefinitely.

Resist We Much on March 12, 2013 at 6:14 PM

Now just because the slimy French Socialist are French and giant hypocrites is no reason to disparage them.

SparkPlug on March 12, 2013 at 6:15 PM

Qui est John Galt?

Colbyjack on March 12, 2013 at 6:16 PM

He’s been in office for less than a year, but the honeymoon phase is already over and Socialist French President Francois Hollande’s approval rating is on the strugglebus.
=======================================

Sounds just like Hopeys!

canopfor on March 12, 2013 at 6:16 PM

You have to wonder how long Carlos Ghosn of Renault will stay in France, when he could easily move to Brazil, and run the Renault/Nissan empire from there – or any other no/low tax country (does Monaco beckon?).

Another Drew on March 12, 2013 at 6:17 PM

but you better expect that people are going to act in their own rational self-interest and do what they can to save more of their own money.

Exactly. But Socialist and Communists think only of their own self interests and delude themselves that everyone thinks as they do.

They also believe that as they skim off the top and live like the Politburo in Soviet Russia (livin’ large) that no one will notice. Eventually peasants realize that they are still peasants.

Our own government thinks that they can continue to inflict pain on its citizens while they wine and dine, go on junkets, pack more pork into bills, fatten their pockets while they ignore the dire concerns of the very people who voted for them.

This will end.

The French are idiots. But WE are Americans. We are different, and we will demand better.

That day is fast coming….. Why? Because like fat, French Socialists…. like corrupt Communist Soviets……. they have gone too far.

We are Americans. That’s why this will, and must, end.

Cody1991 on March 12, 2013 at 6:20 PM

That’s the problem with making the rich pay their fair share. ™

They can afford to move. They are rich, after all.

The Rogue Tomato on March 12, 2013 at 6:20 PM

Oh, it’s French businessmen this time! At least Anderson Cooper can report this without having another tittering Depardieu meltdown.

LOL!

Ladysmith CulchaVulcha on March 12, 2013 at 6:21 PM

Next Leftist target:

Corfield v. Coryell

Ben Hur on March 12, 2013 at 6:26 PM

The reason socialism has failed is because they didn’t socialize stuff the right way. That’s why.

Otherwise its really a great idea, like swimming with a boat anchor chained to your leg. You just have to find a boat anchor that floats, that’s all.

SparkPlug on March 12, 2013 at 6:33 PM

I don’t know too much about the new Puerto Rican law, but from what I’ve just heard it sounds smart. Just the thing to bring investment to the island.

On a related note, the PGA (golf) tour just held the Puerto Rico Open tournament. Every other TV commercial was an ad to encourage investment (not tourism) in P.R. This is good…common sense. Capitalism at work. The investment dollars will help create jobs.

It’s very encouraging to see Puerto Rico embracing capitalism and a good move considering that our country is incrementally rejecting it. I hope to see more of this… a glimmer of hope.

visions on March 12, 2013 at 6:33 PM

but the honeymoon phase is already over and Socialist French President Francois Hollande’s
===============================

The,

Peppy LePew Affect/Effect!!

canopfor on March 12, 2013 at 6:37 PM

Now just because the slimy French Socialist are French and giant hypocrites is no reason to disparage them.

SparkPlug on March 12, 2013 at 6:15 PM

I’m part French (my ancestors actually emigrated to Nova Scotia in the 1500s, then over to Louisiana in the 1700s). So I feel perfectly fine with disparaging this sorry lot.

To be blunt, they have never recovered from the anarchy of the French Revolution and Napoleon’s despotic regime. Both events have left an irreparable scar on that country. C’est la vie.

Myron Falwell on March 12, 2013 at 6:39 PM

but clung to his pledge to end a jobs crisis.

Just do what the little Jakarta street kid would do, call it “a bump in the road”. No more “crisis”. Problem solved.

ThePrimordialOrderedPair on March 12, 2013 at 6:42 PM

I don’t know too much about the new Puerto Rican law, but from what I’ve just heard it sounds smart. Just the thing to bring investment to the island.

On a related note, the PGA (golf) tour just held the Puerto Rico Open tournament. Every other TV commercial was an ad to encourage investment (not tourism) in P.R. This is good…common sense. Capitalism at work. The investment dollars will help create jobs.

It’s very encouraging to see Puerto Rico embracing capitalism and a good move considering that our country is incrementally rejecting it. I hope to see more of this… a glimmer of hope.

visions on March 12, 2013 at 6:33 PM

The only downside could be if Socialists successfully ratify Puerto Rico as a state.

Myron Falwell on March 12, 2013 at 6:43 PM

To be blunt, they have never recovered from the anarchy of the French Revolution and Napoleon’s despotic regime. Both events have left an irreparable scar on that country. C’est la vie.

Myron Falwell on March 12, 2013 at 6:39 PM

Forget them. The French Revolution beat the American Revolution over here. That’s how we ended up in this irreparable mess, ourselves.

France is already into its 5th republic. It’s time that we start a 2nd, ourselves. Our first one is dead and gone, now. Dead. And. Gone. We live in the American Socialist Superstate, at this point.

ThePrimordialOrderedPair on March 12, 2013 at 6:45 PM

visions on March 12, 2013 at 6:33 PM

Puerto Rico never was that bad. they produced Roberto Clemente and he made it OK to play right field. He is a blessed man in my book!

Oh, Canada!

People are running numbers to duck what they believe is a developing crisis in the lower 48. I don’t know which one they are talking about, however.

My economist and another contact were talking and determined that he could work on getting enough conservatives to move north and become a political force in Canada.

Think of the advantages. Global Warming would make life better, the NFL will soon be up there, they rule in hockey, you can walk into almost any neighborhood without being hated for having a job, the French are lousy in military arts and hunting…

IlikedAUH2O on March 12, 2013 at 6:45 PM

France is already into its 5th republic. It’s time that we start a 2nd, ourselves. Our first one is dead and gone, now. Dead. And. Gone. We live in the American Socialist Superstate, at this point.

ThePrimordialOrderedPair on March 12, 2013 at 6:45 PM

I prefer Dr. Levin’s salient term, “Ameritopia.”

Myron Falwell on March 12, 2013 at 6:47 PM

The only downside could be if Socialists successfully ratify Puerto Rico as a state.

I think it’s high time to cut ‘em loose and give ‘em independence. PR might actually come out ahead with the way we hand out foreign aid.

hawkeye54 on March 12, 2013 at 6:47 PM

Now I have “Flight of the Bumble Bee” stuck in my head.

katy the mean old lady on March 12, 2013 at 6:47 PM

Will the real Brayam please stand up.

CW on March 12, 2013 at 6:48 PM

visions on March 12, 2013 at 6:33 PM

Lived there (Old San Juan) for 5 yrs. Loved it!
If the Nice Old Man hadn’t gotten sick, I’d still be there.

katy the mean old lady on March 12, 2013 at 6:50 PM

You just have to find a boat anchor that floats, that’s all.

SparkPlug on March 12, 2013 at 6:33 PM

Or move the anchor to dry land. If you feel like you’re swimming with an anchor tied to your leg, who are we to say otherwise?

BobMbx on March 12, 2013 at 6:50 PM

I prefer Dr. Levin’s salient term, “Ameritopia.”

Myron Falwell on March 12, 2013 at 6:47 PM

Mine acronymizes(?) much better … and more accurately :)

ThePrimordialOrderedPair on March 12, 2013 at 6:50 PM

As French socialists we reserve the right to further destroy our economy and watch the producers self exile in order to prove that Utopia is only one regulation/tax away.

antipc on March 12, 2013 at 6:51 PM

It’s happening here, check the tax roles in CA, NY, MI (Detroit) and IL. They aren’t getting the tax receipts they expected due to the flight of the wealthy.

Tater Salad on March 12, 2013 at 6:53 PM

The French Revolution that is about to take place is; the productive French will revolt against the un-productive.

Tater Salad on March 12, 2013 at 6:54 PM

It’s happening here, check the tax roles in CA, NY, MI (Detroit) and IL. They aren’t getting the tax receipts they expected due to the flight of the wealthy.

Tater Salad on March 12, 2013 at 6:53 PM

It would be much more pronounced if state taxes weren’t federally deductible – which is one more way that leftist states feed off of everyone else.

ThePrimordialOrderedPair on March 12, 2013 at 6:56 PM

Pity poor Hollande. How was he supposed to know that class-warfare rhetoric, jacked-up taxes, and a program of unabashed deficit spending wouldn’t fix the economy? It seems like the sort of great idea that couldn’t possibly fail. Maybe folks should just try it a few more times in a few more places… after all, the fact that it hasn’t worked the last few dozen times shouldn’t be viewed as conclusive. Probably, we just haven’t spent enough…

morganfrost on March 12, 2013 at 7:00 PM

Will the real Brayam please stand up.

CW on March 12, 2013 at 6:48 PM

I’m satirising Brayam. See the Piers Morgan thread to understand why. lol I made a point about the fleeing French before this was posted and, yes, Agence France-Presse is a “conservative blog” that “cherrypicks facts,” according to Brayam.

“Non, ce n’est pas la version française d’Associated Press. C’est vraiment un site du web à la Alex Jones. Vraiment! My Dear Leader, Paul Krugman, has told me so! Sérieusement! Mon Dieu, vous êtes un tel imbécile!”

- Brayam

lol

Resist We Much on March 12, 2013 at 7:03 PM

“The right economic strategy is not to stay on this track without doing anything”

There, Monsieur Holland, I fixed it for you.

MTF on March 12, 2013 at 7:15 PM

French President Francois Hollande, battling to appease voters as his economic goals recede, loosened a budget target for 2013 on Tuesday but clung to his pledge to end a jobs crisis.

I see what you did there, Reuters…nice dig :)

Wanderlust on March 12, 2013 at 7:35 PM

Ever read The Parable of 10 Men in a Bar?

ITguy on March 12, 2013 at 7:36 PM

Qui est John Galt?

Colbyjack on March 12, 2013 at 6:16 PM

Well played!

ITguy on March 12, 2013 at 7:39 PM

been in office for less than a year, but the honeymoon phase is already over and Socialist French President Francois Hollande’s approval rating is on the strugglebus.
=======================================

Sounds just like Hopeys!

canopfor on March 12, 2013 at 6:16 PM

…does their media wear knee pads…like ours?…or just bibs?

KOOLAID2 on March 12, 2013 at 7:45 PM

French WW11 military rifles for sale. Never fired, only dropped once.

Bacon4allah on March 12, 2013 at 7:45 PM

But…but…but the Democrats say that paying taxes is PATRIOTIC……….except for those Democrats who go out of their way NOT TO PAY TAXES.

The Kennedys, Rangel, Kerry, Geithner……………..

GarandFan on March 12, 2013 at 7:50 PM

Elections have consequences.

jnelchef on March 12, 2013 at 8:52 PM

The Flight of the Frenchies is the dream of all the kids under 25 that I know. They aren’t a random sample.

thuja on March 12, 2013 at 9:11 PM

Hopefully le hypocrites have enough brains not to move to another European socialist nation…

MelonCollie on March 12, 2013 at 10:17 PM

Exactly. But Socialist and Communists think only of their own self interests and delude themselves that everyone thinks as they do.

Cody1991 on March 12, 2013 at 6:20 PM

But don’t forget the criminal racket aspect. Political ideology, racialism and religion have long been useful tools for fleecing the sheep. It’s a near-perfect scam. If you argue that they are indeed crooks, the elites are protected by the sheeple masses that surround them.

The bleating by the ignorant who have deluded themselves to believe that they are benefiting somehow (or are simply just “right” while you’re “wrong”) is deafening.

The unfair thing is that those of us who don’t buy into this crap are being dragged down with them. We’re simply outnumbered.

Dr. ZhivBlago on March 13, 2013 at 5:51 AM

When Americans put their bill of rights for sale, for as little as a month’s worth of birth control, guess what? There’s nothing left that makes America any more special than any place else in the world.

MNHawk on March 13, 2013 at 8:47 AM

Yeah and schmucks like me who follow all the tax and home buying and work rules AND NEVER TOOK ONE CENT FROM THE GOVERNMENT IN ANYWAY SHAPE OR FORM suffer.

F$)k. Them all.

losarkos on March 13, 2013 at 11:09 AM