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
Taverner
(55,476 posts)Tax them all!
dipsydoodle
(42,239 posts)"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.
dkf
(37,305 posts)Taverner
(55,476 posts)Taverner
(55,476 posts)We here in the US need sharp increases in the income tax - even for middle class families!
IamK
(956 posts)itsrobert
(14,157 posts)$35K in Southern California doesn't buy much.
Taverner
(55,476 posts)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)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)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)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.
CreekDog
(46,192 posts)I mean er eat?
jpak
(41,760 posts)yup
Taverner
(55,476 posts)But the majority of American citizens are making ~$35K per year
Lucky Luciano
(11,266 posts)Let's compete with Cambodia for worst quality of life! Yay!!
Taverner
(55,476 posts)DonCoquixote
(13,616 posts)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)That wont even rent you a studio in NYC. Try over $1 million and I'd cap that at 40%.
Lucky Luciano
(11,266 posts)empty wine bottles and tuna fish cans and build yourself a house for crying out loud.
Sheesh...got some whiners here!
alarimer
(16,245 posts)We could use a little socialism like that!
Yo_Mama
(8,303 posts)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)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)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.
Comrade_McKenzie
(2,526 posts)uppityperson
(115,681 posts)France. I don't think foreigners should be taxed differently than French.
ProgressiveProfessor
(22,144 posts)They could easily block this kind of taxes.
harun
(11,348 posts)kemah
(276 posts)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)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)State colleges often have higher tuition rates for out-of-state students.
Wouldn't this be along the same lines?
pa28
(6,145 posts)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)I suspect that it will be an utter failure... capital will flee France for more accomodating EU nations.
T_i_B
(14,749 posts)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)That sounds pretty clever if it works.
Me, I love the Brits.