Eurostar ad urges French tax exiles to head to UK

[88m3]

© Photo: AFP
Eurostar, majority-owned by a French public rail company, has risked upsetting the French government after an ad in its onboard magazine urged those “tired of paying too much tax in France” to consider moving to the UK.
By Sam Ball (text)

Cross-Channel rail operator Eurostar has found itself in hot water this week after publishing an ad in its onboard magazine advising French nationals to consider moving to the UK to escape France’s high tax rates.

“Tired of paying too much tax in France?” asks the ad for accountancy firm Euro Accounting, published in the Metropolitan magazine. “The UK will roll out the red carpet for you,” referring to comments made by British Prime Minister David Cameron last year in an effort to woo French tax exiles.

It then lists a number of tax benefits to living in the UK, including its comparatively low social security tax of 12 per cent, corporation tax of 20 per cent and a lack of a wealth tax.

The ad, on page 78 of the October edition of the magazine, is unlikely to go down well with the French government, not least because Eurostar is 55 percent owned by France’s SNCF – a public company.

Editor: Eurostar approves content

While Metropolitan magazine is produced entirely by the London agency INK, rather than by Eurostar itself, its editor Marie-Noëlle Bauer told the Huffington Post that the rail operator “of course has the right’ to approve the content of each edition before publication.

A spokesperson for Eurostar acknowledged that the ad had “escaped the notice of Eurostar’s marketing team”, adding that otherwise “we would not have published it”.

The issue of tax exiles is already a sensitive subject in France, particularly after the government announced plans to introduce a new 75 percent “super tax” on earnings above one million euros.

Opponents have claimed the tax will simply drive the country’s wealthy citizens and businesses to countries with less stringent tax regimes.

Last year, French actor Gerard Depardieu stirred up controversy with his decision to relocate to Belgium, ostensibly to avoid the new 75 percent tax.

More than 200,000 copies of Metropolitan magazine are distributed on Eurostar trains each month, reaching an estimated 850,000 passengers.

The offending ad will not appear in any future editions of the magazine, a Eurostar spokesperson told FRANCE 24.

http://www.france24.com/en/20131026-eurostar-ad-french-tax-exiles-uk

@mbewane
@Liu Kang

 

[WaveGang]

misleading. taxs here are fukked, highest inflation rate in food n energy in europe this aint switzerland lol

 

[newworldafro]

75% .................................................................................................... they got running things

 

[Liu Kang]

About that 75% tax. People have things misunderstood, I think.
First of all, I'm not necessarily behind that law because I do think it's a little too much and it's an idea Hollande came with out the blue during the Socialist Party primaries to be seen as a true left-wing dude.

Second, here are the 6 basic tax brackets (annual income in euros) in France :
- 0 < 5,964 = 0
- 5964 < 11896 = 5.5%
- 11,897 < 26,420 = 14%
- 26,421 < 70,830 = 30%
- 70,831 < 150,000 = 41%
- 150,000 < 250,000 = 45%
===> So If I earn 100K € a year, I'm on the fifth bracket

Third, here are the way the taxes are calculated (for a 100K income)
- 0€ on the first bracket
- 326€ on the second bracket
- 2,033€ on the third bracket
- 13,322€ on the fourth bracket
- 11,959€ on the fifth bracket ((100,000 - 70,831) x 41%)
= A total of 27,640€ on a 100K annual income, therefore an average tax of 28%

Then you have special taxes for the wealthy, for example, if you earn :
- From 250,000 to 500,000, there is a 3% "bonus" tax on the income above 250,000€ making it a seventh tax bracket at 48%
- Above 500,000, there is 4% "bonus tax on the income making it a eighth bracket at 49%

Now, there is the new law to come, which basically creates a new bracket, a 9th one : so the 8th being at 49% from 500K to 1M, the 9th will create a jump at 75% for all income ABOVE 1 mill. So If you earn 1.5M a year, only 500K will get taxed at 75%. Yes, it's very much but there are many niches and tax credits when you are wealthy which decrease the taxable average income, so that re-balance things a little. Plus, the wealthy have many ways to avoid paying taxes (thanks to income optimization or overseas residences) or earn money without working (through funds, investments, stocks) than the middle class don't have access to. It's the game and rules just changed a little but don't worry, the wealthy will still find ways to win.
I remember there were this vid showing how the wealthy relatively paid less than the middle class in the US. Well guys, it's the same everywhere in the world. So, I think this tax is fair (even though a little too high)

 

[Domingo Halliburton]

I didn't read the article or the responses but the French hate rich people....






edit: I'll read it tomorrow m83 its late.

 

[NSSVO]

Good, United has a hard enough time competiting with two (three every so often) team league in La Liga, and Chelski and Citeh buying up everyone. Glad I can stop worrying about PSG and Monaco.

 

[mbewane]

I didn't read the article or the responses but the French hate rich people....






edit: I'll read it tomorrow m83 its late.

Don't know much about taxation here but a couple months ago there were series of articles of rich french people "fleeing" to Belgium, and in turn I think they discovered that there are proportionally more Belgians in France than vice-versa.

 

[Hiphoplives4eva]

I'm sure the liberals here are all salivating at the idea of bringing this "awesome" progressive idea over to the states. To those people i say:





BTW this is obviously another example of "unchecked liberalism" going wrong....

 

[Domingo Halliburton]

"My true enemy has no name, no face, no party. He will never stand for election and will never be elected. Despite all this, he is in charge. My enemy is the world of finance," Hollande declared...

guess I'm this guy's enemy