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dipsydoodle

(42,239 posts)
Wed Jul 4, 2012, 06:50 PM Jul 2012

Francois Hollande announces French tax grab on holiday homes

Source: Telegraph

Approximately 200,000 Britons own second homes in areas such as the Dordogne and other parts of France, particularly those serviced by budget airlines.

Now, however, holiday home owners find themselves in the sights of President François Hollande as he seeks to tax the better-off to reduce France's large budget deficit.

On Wednesday (July 4th), the French government announced it was to increase taxes on foreign-owned second homes. Tax on rental income would rise from 20 per cent to 35.5 per cent, and capital gains tax on property sales would rise from 19 per cent to 34.5 per cent. The extra in each case is being labelled a "social charge".

A Treasury source said on Wednesday night: "We will need to study the details. But we will of course challenge any proposal which breaches European single market laws and anti-discrimination rules."

Read more: http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/9377307/Francois-Hollande-announces-French-tax-grab-on-holiday-homes.html

35 replies = new reply since forum marked as read
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Francois Hollande announces French tax grab on holiday homes (Original Post) dipsydoodle Jul 2012 OP
They use the services but they don't want to pay for them? Taverner Jul 2012 #1
I assume you missed this bit dipsydoodle Jul 2012 #3
They don't want rich people owning vacation homes in France I guess. dkf Jul 2012 #4
Smells Like Laffer Spirit Taverner Jul 2012 #12
LOL!!! jpak Jul 2012 #32
Right now, every single government needs to raise taxes Taverner Jul 2012 #5
agreed.. 70% income tax on anyone or family making over $35,000 per year... n/t IamK Jul 2012 #8
I hope you're being sarcastic itsrobert Jul 2012 #9
California is not the rest of the USA Taverner Jul 2012 #11
Why? California isn't the majority of the US Taverner Jul 2012 #13
move on with your Bourgeoisie self... IamK Jul 2012 #14
Boron is not LA DonCoquixote Jul 2012 #19
How much sage did you smoke? CreekDog Jul 2012 #29
20 Mule Team BS jpak Jul 2012 #33
Yes, and I know that would hit me Taverner Jul 2012 #10
Nonsense. Yes, let's all be reduced to eating sagebrush stew. Lucky Luciano Jul 2012 #16
JFC you just don't get it, do you? Taverner Jul 2012 #17
actually DonCoquixote Jul 2012 #18
That's ridiculous leftynyc Jul 2012 #25
The rummage through the garbage for some Lucky Luciano Jul 2012 #28
Good for him! alarimer Jul 2012 #2
I don't think foreigners should be taxed at higher rates than residents Yo_Mama Jul 2012 #6
Most are middle class dipsydoodle Jul 2012 #20
I belive they will taxing second homes the Brits use as bread and breakfasts, kemah Jul 2012 #24
Hollande is my favorite leader in the world right now. nt Comrade_McKenzie Jul 2012 #7
Taking it back to Jan 1 2012? Reading article it looks like it is costing British gvt to subsidize uppityperson Jul 2012 #15
This won't be in effect until the EU challenges are resolved ProgressiveProfessor Jul 2012 #21
Vive Hollande!!!! harun Jul 2012 #22
Well we know have an opportunity to prove that taxing the rich will work in fixing this economy kemah Jul 2012 #23
So it is legal Rabid_Rabbit Jul 2012 #26
I don't know FiveGoodMen Jul 2012 #31
See. You can do austerity in two ways. pa28 Jul 2012 #27
I'm interested to see how this turns out taught_me_patience Jul 2012 #30
If it get's this dickhead then great T_i_B Jul 2012 #34
Extra taxes from foreigners and fewer taxes to the horrid Brits. Prometheus Bound Jul 2012 #35

dipsydoodle

(42,239 posts)
3. I assume you missed this bit
Wed Jul 4, 2012, 06:54 PM
Jul 2012

"Holiday home owners already pay two other taxes to the French government: the taxe fonciere, which is paid by the house owner and the taxe d'habitation, which is paid by those who live in it."

That's what pays for services.

 

Taverner

(55,476 posts)
5. Right now, every single government needs to raise taxes
Wed Jul 4, 2012, 07:58 PM
Jul 2012

We here in the US need sharp increases in the income tax - even for middle class families!

 

Taverner

(55,476 posts)
11. California is not the rest of the USA
Wed Jul 4, 2012, 10:11 PM
Jul 2012

Perhaps an adjustment should be made for California...

I live here, and yes, that would hit me hard.

But it would neutralize the discrepancy between CA salaries and everywhere else salaries.

But for the rest of the US (not including NYC, Miami and Chicago) anyone making over $35K is doing better than most.

 

Taverner

(55,476 posts)
13. Why? California isn't the majority of the US
Wed Jul 4, 2012, 10:22 PM
Jul 2012

And most Americans make around $35K

I don't but maybe I should...

If we can create a society which serves us in ways the $35K cannot - then why the fuck not?

Why not create our national identity?

 

IamK

(956 posts)
14. move on with your Bourgeoisie self...
Wed Jul 4, 2012, 10:27 PM
Jul 2012

Last edited Wed Jul 4, 2012, 11:10 PM - Edit history (2)

I grew up on a mink ranch outside of Boron CA.. We used to mine Borax for extra money and eat sage brush stew everyday and night...I lived in a shack made out of wine bottles and opened cans of tuna. We never made a dollar over $7500 in the 80s...I still have fond memories of Mr. Bippy and Madame Daisey, my first 2 minks. They are now a cell phone case. It can be done, you just don't want to pay your fair share....

DonCoquixote

(13,616 posts)
19. Boron is not LA
Thu Jul 5, 2012, 02:26 AM
Jul 2012

and not everyone is a farmer. The last time someome tried to make eveyone in the nation farmers, Pol Pot tranished the left for years.

 

Taverner

(55,476 posts)
10. Yes, and I know that would hit me
Wed Jul 4, 2012, 10:09 PM
Jul 2012

But the majority of American citizens are making ~$35K per year

Lucky Luciano

(11,258 posts)
16. Nonsense. Yes, let's all be reduced to eating sagebrush stew.
Wed Jul 4, 2012, 11:35 PM
Jul 2012

Let's compete with Cambodia for worst quality of life! Yay!!

DonCoquixote

(13,616 posts)
18. actually
Thu Jul 5, 2012, 02:24 AM
Jul 2012

The mink farmer went to one extreme talking about houses of wine bottles and tuna cans, the other person went to another. Yes, the middle class will need to sacrifice some, but as is, they are already the most squeezed, especially with their wages. You will not sell middle class taxes until you attack the hyper bloated at the top, whose wealth , if taxed at a european, or even a clinton era rate, would do wonders.

 

leftynyc

(26,060 posts)
25. That's ridiculous
Thu Jul 5, 2012, 11:23 AM
Jul 2012

That wont even rent you a studio in NYC. Try over $1 million and I'd cap that at 40%.

Lucky Luciano

(11,258 posts)
28. The rummage through the garbage for some
Thu Jul 5, 2012, 04:24 PM
Jul 2012

empty wine bottles and tuna fish cans and build yourself a house for crying out loud.

Sheesh...got some whiners here!





Yo_Mama

(8,303 posts)
6. I don't think foreigners should be taxed at higher rates than residents
Wed Jul 4, 2012, 08:12 PM
Jul 2012

It seems counterproductive to me.

A lot of these "foreigners" are middle-class people, not rich people.

I suspect this will have a net negative outcome.

dipsydoodle

(42,239 posts)
20. Most are middle class
Thu Jul 5, 2012, 05:08 AM
Jul 2012

Just people who bought dilapidated farmhouses etc cheap'ish and then devoted themselves to restoration in such a way that some rooms could be let out for holidays. Yes - tax income to France ,at best, will probably just say the same for now and then decrease. On the capital gains side it pre-assumes a capital gain which may not necessarily follow - prices will doubtless drop anyway as a result of this.

I can understand Hollande's motives but as is the case with his election promise not to reduce the size of their public sector he may have sought insufficient advice on the subject.

kemah

(276 posts)
24. I belive they will taxing second homes the Brits use as bread and breakfasts,
Thu Jul 5, 2012, 10:52 AM
Jul 2012

Second vacation homes should be taxed at a higher rate. Here in Texas we have the homestead act, your primary home is taxed less then any other homes you have. If it is good for Texas of all places, it should be fair for all.

uppityperson

(115,678 posts)
15. Taking it back to Jan 1 2012? Reading article it looks like it is costing British gvt to subsidize
Wed Jul 4, 2012, 10:49 PM
Jul 2012

France. I don't think foreigners should be taxed differently than French.

kemah

(276 posts)
23. Well we know have an opportunity to prove that taxing the rich will work in fixing this economy
Thu Jul 5, 2012, 10:50 AM
Jul 2012

I can not wait to see the results. I firmly believe that the results will be beneficial to the majority of the French.

 

Rabid_Rabbit

(131 posts)
26. So it is legal
Thu Jul 5, 2012, 11:29 AM
Jul 2012

to have different taxes for foreigners? Seems a little unfair.
I can see Romney's new slogan now 'More taxes on Mexicans to pay for road improvements'

FiveGoodMen

(20,018 posts)
31. I don't know
Thu Jul 5, 2012, 07:08 PM
Jul 2012

State colleges often have higher tuition rates for out-of-state students.

Wouldn't this be along the same lines?

pa28

(6,145 posts)
27. See. You can do austerity in two ways.
Thu Jul 5, 2012, 12:08 PM
Jul 2012

Unfortunately, high taxes on the top bracket and taxes on assets in this country will never be considered. Any such discussion would get you kicked off the table reserved for very serious people.

Good for Hollande. Good for France.

 

taught_me_patience

(5,477 posts)
30. I'm interested to see how this turns out
Thu Jul 5, 2012, 05:20 PM
Jul 2012

I suspect that it will be an utter failure... capital will flee France for more accomodating EU nations.

T_i_B

(14,746 posts)
34. If it get's this dickhead then great
Fri Jul 6, 2012, 07:27 AM
Jul 2012
http://www.guardian.co.uk/politics/2009/oct/09/taxpayers-alliance-director-tax

The Taxpayers' Alliance, a campaign group that calls for tax and spending cuts and claims to represent the interests of taxpayers, has admitted one of its directors does not pay British tax.

The Guardian has learned that Alexander Heath, a director of the increasingly influential free market, rightwing lobby group, lives in a farmhouse in the Loire and has not paid British tax for years.


There are Brits who move overseas specifically for tax avoidance. No point in denying that.

Prometheus Bound

(3,489 posts)
35. Extra taxes from foreigners and fewer taxes to the horrid Brits.
Fri Jul 6, 2012, 10:10 AM
Jul 2012

That sounds pretty clever if it works.

Me, I love the Brits.

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