The up and coming 3rd place candidate in the French election wants a tax of 100% on incomes above €1m.

Usually I talk about monetary policy, but on the subject of fiscal policy – my proposal would be 1) introduce a flat income tax across all individuals and corporations of 15% while 2) introduce a capital gains tax of 60% – used to pare down the budget deficit until the deficit is cut by 90% wherein a downward adjustment to the capital gains tax is negotiated.

A high capital gains tax and low income tax would discourage speculation and encourage wage growth. Right now, the focus of the economy is on capital gains engineered with artificially ‘repressive’ interest rates – spurring (virtually riskless) risk taking for the sake of generating (virtually infinite) capital gains.

By implementing what I am proposing, the tumor that is the speculative banking class would shrink opening up space for higher wage paying jobs within an economy that taxes that income at very low rates. The high paying (non finance) jobs are there, but the speculative FIRE (finance, insurance and real estate) economy robs them of oxygen and light.

Social security would be ‘means tested.’ I.e., if your net worth and income are above a certain threshold you are ineligible. I would lower the age of a universal healthcare program like Medicare to 35; paid for by cutting defense spending by 80% – and I would make drugs like Marijuana legal.

Also, monopolies would be broken up. One of the biggest threats to jobs in U.S. are monopolies. A company like Coke for example, sure it employs a lot of people, but it controls way too much of the market. Let 10 or 15 companies take its place, creating 10 X’s more jobs. On the subject of globalization – wherein global trade impacts regional economies – I would match how companies allocate their capital globally with how they are hiring locally. Apple computer has over 60 bn. in cash parked overseas to avoid taxation. Fine, but then the iPads manufactured in China get a pro-rata import duty to match the lost tax revenue on Apple’s overseas investments.

Corporate ‘personhood’ must also be abolished, or, companies causing mass death like Union Carbide/Dow Chemical (Bhopal) must face the death penalty like any mass murderer.

Regarding the proposal by the French politician of a 100% tax on incomes above 1 mn. euros. Dumb idea. What happens is that people stop dreaming up ways to make tons of money with innovative technologies and business models so the fountain of growth needed to sustain an upward bias in living standards evaporates. Making lots of money is not a problem in an economy where the risks and rewards of enterprise are evenly distributed to the best of our ability. (Making loans available to Goldman partners at 0% while forcing folks in the hood to pay 400% (annualized) is just one example of how NOT to run an economy).

Also, recognizing the value of people who don’t do much is needed to round out a healthy, diversified economy. For example, people who elect to not own a car and don’t drive at all should be given a monthly stipend for the value they add to the community in the form of a cleaner environment. This credit can be paid for by the people who drive very low mileage vehicles extensively. For every Lamborghini owner there should be a homeless person or two getting a few bucks a month – paid for by the Lamborghini driver.

“Look at the lilies and how they grow. They don’t work or make their clothing, yet Solomon in all his glory was not dressed as beautifully as they are.”
Luke 12:27

Additionally, any kid who was brought up in the lower brackets of poverty who gets accepted to an Ivy League school gets their education paid for by a hedge fund manager’s tax. On the subject of hedge funds, there should be a limited number of hedge fund licenses available, like taxi medallions. Just like there is a strictly controlled number of ‘primary dealers’ of U.S. gov’t securities.

Extra Points: Every American should get, along with their social security number, a free bank account with the U.S. Citizens Bank wherein each security offering of every stock, bond, etc. is increased by 2% and those shares are divided amongst all citizens in their USCB account – available for withdrawal to pay for 1) education 2) charity 3) a donation back to the government to enter a national lottery to eat dinner at the White House with the President and the First Family.

24 comments on “The up and coming 3rd place candidate in the French election wants a tax of 100% on incomes above €1m.
  1. capt ray says:

    Sounds a bit like RP, doesn’t it?
    :D

  2. Dpyan says:

    I think RP would be against the capital gains tax increase and medicare cause the free market will fix everything, or something like that.

  3. Anthony says:

    Interesting…. I think Hollande will win eventually but I am glad the debate is being push further left. Tax the rich is hitting home in France, you only can hope if this happens that the Government then does something responsible with the new gains. Of course those that can will pick up and move to Switzerland or Monaco or even the US where the “threat” is Clinton level tax rates or about 40% after $350,000.

    They know that too many cuts to the welfare state in France will mean constant riots and strikes.

  4. Tritone says:

    Dudes!

    Take it to the MAX! I like proposals good ones!
    it’s time for another ” hooter break” dudes cheers!

  5. I_Cant_Believe_Its_Just_a_Dip says:

    Sounds good Max, tax the massive profits and kill the ridiculous risk free speculation, but what about the huge wealth transfer that has already taken place?. Btw I take it you guys aren’t voters yet-should be honorary citizens by now:)

  6. Jayme says:

    I don’t understand whether the percentages are simply thrown out as a starting place or if these could somehow be tweaked for better performance as the economy changes.

    “For example, people who elect to not own a car and don’t drive at all should be given a monthly stipend for the value they add to the community in the form of a cleaner environment.”

    Not being facetious: this also implies that when a family member dies, the remaining family should get a death benefit paid out since their loved one is no longer consuming resources. Of course we’d have to be sure the ‘loved one’ weren’t ‘helped’ into the afterlife just to get the bonus. ;-)

    As for drugs – it’s really none of the governments business. I’m not for ‘legalization’ so much as decriminalization.

    Overall I think the government budgets could do with an 80% cut across the board (including the military). These are not bad ideas but the monied/power interests won’t have it – imo. I don’t know that Max has the temperament to play the political games but it sure sounds like he’d make a good adviser.

    I agree about the 100% tax crap. It’s nice to dream of ‘sticking it to the man’ but this kind of irrational response is simply divisive and will prevent the people from working toward real solutions.

  7. Christophe says:

    As I understand from reading French websites, Mélanchon has already long-since backpedaled on that promise. As I recall, there were some football pros who objected (which made it look better than having rotten elites do so).

    Mélanchon is a joke. The guy voted for the Maastrich treaty and still supports the EU, which basically has such extreme powers at this stage (to say nothing of what it has in the pipelines) that any politician who dares suggest he’ll be able to make drastic policy changes is LYING. Mélanchon is even a freemason…

    The best candidate seemed to be Asselineau, but he miserably failed to get his 500 signatures (in an undemocratic system where presidential candidates must get signatures from 500 mayors, when the mainstream parties ‘own’ nearly all of them and threaten wide-ranging punishments to independent mayors who dare to support black-listed candidates).

  8. HUH? says:

    A 60% capital gains tax for individuals making millions upon millions in gains would seem not to offend the majority. To retirees living on modest investments slightly above the non-taxed margins (who are suffering enough under the diminutive gains applied to inflation as it is) would suffer more, no?

    80% reduction in defense spending go help towards those retirees getting a slightly higher margin on their non-taxed gains.

    A marijuana tax could help support financing of schools & hospitals – bringing a new meaning to “higher” taxes.

  9. Jayme says:

    I suppose the real question is, in a system based on selfish demands and education for competition, how does one get those blessed with power to recognize the best interests of the whole? Any central authority cannot adorn wealth upon the people. Wealth and glory arise out of the full expression of each person’s potential. With the system as it has been defined: of, by and for the few people who are powerful, such potential is trampled and wealth destroyed.

    The ideas of better government through fiscal policy are good but must also come out of personal understanding and trust by each person such that they recognize, not through coercion and deceit but through knowledge, that implementing such social policies is in fact to the benefit of all people (even if not for a particular individual). I don’t know how it is in France or other nations but this is not within the educational indoctrination given young people in the U.S. today. Somewhere in this transformation must come the trans-formative education people need to recognize that they can’t simply be passive observers to the actions of some small group of obscure leaders in some remote place they neither know nor care about.

    A rare example of education that teaches at a higher level:

    Children Full of Life (1 of 5)
    http://www.youtube.com/watch?v=armP8TfS9Is&list=PL1D6A31612BFFD467&feature=plpp_play_all

  10. Jayme says:

    “I suppose the real question is, in a system based on selfish demands and education for competition…”

    I should also add “consumption.”

  11. trooper dave says:

    Don’t the French know that to get the “best” people at the top you have to continually pay them more and give them bonuses, and when they fuck everything up then pay them millions to leave; then repeat the process with some other no chin numb nuts. Meanwhile, on the factory floor or in the street you have to cut wages; increase hours; remove benefits and shove their faces into the dirt to get work from a common man!!!!!! But as long as they have football the common man will not question the mouthful of dirt they have to keep swallowing, oh sport!!!

  12. Scott says:

    France Blows.

  13. Jayme says:

    This 2003 article seems to explain why one should not trust a charismatic politician who is confident in their positions:

    Why People Fail to Recognize Their
    Own Incompetence
    http://vision.psy.mq.edu.au/~peterw/corella/237/incompetence.pdf

  14. Robert Mockan says:

    The exodus of wealthy French to South America will be a sight to behold. So they move their companies to China, India, and Russia, and live in Brazil. Then the remaining peons can tax each other to give those on welfare all their money. LOL!

  15. Robert Mockan says:

    I have a better idea. Start a credit monetary system where EVERY person receives a basic stipend to live comfortably, weather they work or not. Automate the industries that provide the necessities for life so no human labor cost. Then any person who desires to contribute, be it as an artist for culture, or a scientist for knowledge, or in sports,.. whatever, receives compensation above the basic stipend. And no more debt slavery, no more hunger and poverty, no more…insane oligarchs.

  16. A digression, French Economics Professor Philip M. Parker, Ph.D. has written more books than there are Authors!….He patented an “Auto-Book Machine” and you can buy his Auto-Books on Amazon, (quite pricey at £30) Type any obscure word like “ZECCA” The Arabic word for the ‘die’ used to stamp gold coins, and there is a Book by the Economics Professor on the very subject! ” ZECCA ~ A Historic Time;Line”

    http://en.wikipedia.org/wiki/Philip_M._Parker

  17. capt ray says:

    @ Dpyan
    … no not really. As president he would be more than happy to see senators agree on something good for the people.

    RP is eager to “compromize” for the better.

    You see; in a republic it is the public that “takes care for itself”. I.e.how do YOU vieuw Your life. The president is “a chairmen”, and not much more. In a republic.

  18. capt ray says:

    … just thinking out lound, pdyan.

    Look, capital gains capital is far less when parties infolved have physical skin in the came. Any for of any attempt of any kind, to implement anything like “sound money” will value stocks to street value. Vaporized.
    Who then gives a flying f about taxing a person working the “company” that generates money? … I think that’s not the point….

    RP brings up, b/c he red/heard about it, the taxation of terrif. Hmmm. First glence , ok. “The factory pays its own protection”. but but but…

  19. NO fiscal policies
    NO monetary policies
    NO confusion
    NO public-private plunder
    NO budget-bonus crime
    NO institutions
    NO parasites

    GLOBAL FISCAL-MONETARY FRAMEWORK:
    http://IMF2.org
    http://bit.ly/taxMachina

  20. 623-3 says:

    Max, flat taxes are always regressive.

    Also, I believe the value that a society should hold high in esteem is not making a ton of money. If that’s the goal for a society, things like what happen today will always ocurr.

  21. 623-3 says:

    I mean, 100% tax on over a million is a great idea as a des-incentive for the idea of making a ton of money being a driver of society.

  22. karmel says:

    Jean-Luc Melenchon is an hypocritical POS, a Freemason, a crypto-trotskyite who has always served the banksters with abject loyalty since his very first public office. Just look him up online, to see how he reacts when questioned about Bilderberg of his elitist freemason buddies when he’s supposed to fight for the common man. It’s beyond obvious. This is pure demagoguery, Melenchon is a crook and a liar. May justice come to this traitor sooner than later.

  23. karmel says:

    @623-3
    Getting rid of any financial incentive to work a lot to produce something new and unique also means that you’re destroying any chance our below-average-looking banksters and golden boys to ever get a proper woman. And that, my man, ain’t ever gonna happen. Wall Street baldies and fatties, imbued with their magical abilities to embezzle clients, need their fair share of young, sweet pxxxxy. No kidding.

  24. karmel says:

    @Alastair Carnegie:
    Philip M. Parker is not French. He’s a professor at crook-and-shill training center extraordinaire INSEAD (please watch Max confronting and INSEAD professor on France 24 some time ago to get an idea about what kind of “philosophy” they teach there). He makes money selling auto-generated books using other people’s works and databases, with the result that he keeps polluting Amazon results, for example, with his thousands of irrelevant, uninteresting, useless “books”. And you’ll notice that his little piece of datamining software is not credited as the author of the books. This crook is. I wonder how long he can keep on doing this before clients protest this utter polluting scam and ask Amazon to kick him out entirely.

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