Why do not you tax CAPITAL.

you tax CAPITAL.


Italy has just proposed a maximum tax of 100,000 euros to attract the rich. We see it does not attract money or preference with taxes. The same goes for investment or the mobilization of means. Capital also moves according to the taxes that weigh on them. To attract them, the level of post-ta`1x return on investments in the country must be at least equal to the equivalent opportunities elsewhere. Let us not delude ourselves, we do not invest in France without taking into account the cost of labor or that of capital.

When an investment is heavily taxed, its pre-tax return must be high enough to make it attractive, and therefore the yields naturally adjust upward to offset the tax burden, thus penalizing issuers. The outlook for pre-tax gains must therefore be higher in countries with high taxes on capital. It is therefore the users who ultimately pay taxes on capital and therefore all French through the costs passed on that pay taxes on profits, on wealth, on capital.

To choose between the banana, the “kinder” or pebbles any individual or animal will choose what will bring him the most pleasure or satisfaction, one does not catch the flies with vinegar … It is thus the capital which will prefer the low-tax countries to invest in them.

The basics of financial logic.

It is important to remember the financial logic: to sell or produce wealth, it is necessary to invest (to invest capital) and to be able to invest one must finance (bring the necessary capital). It is futile to oppose capital and labor by viewing capital as harmful and predatory. Capital like the great Satan is only the slogan of a lost ideology. Work is not necessary as a means of production, but capital is also a means of investment. A company that can not invest can not grow or even sustain its business. And to invest one must provide the necessary capital without excessive debt, those who forget it often pay by the bankruptcy of their company. And since it is fair to pay for work, it is fair to remunerate the capital.

Do not tax work or capital.

Nor must we tax work, we must tax capital. If we agree today with globalization that work is subject to the laws of competitiveness, and that the burden on the work is harmful, so is the capital. it is moving towards the most profitable sectors and countries including taxes. It is no coincidence that the world’s leading online retailers have domiciled their profits in Ireland where tax levels are very low.

Public investments and private investments.

In sectors where profitability is not sufficient or relevant to justify investments such as health, security, infrastructure, the state must then replace the private sector and provide the capital that is lacking. This is also true of sectors where profitability is only possible in the very long term, discouraging initiatives. Even in these conditions one can not do without capital quite the contrary since these sectors of activity are often very capitalistic, hence the indispensable intervention of public policies.

Freedom Equality Fraternity.

These three words are the pillars of our citizenship and the foundation of our constitution. They constitute the bases of the fundamental rights of the citizens of our country and should condition the choices of our social, economic and fiscal policies. Thus taxation should contribute to improve the situation of each one with respect to these great principles. While this is largely true with respect to freedoms and fraternity, it is less and less so with respect to equality, where gaps between the rich and the poor are becoming more important and increasingly flagrant (wages, wealth, standard of living are becoming more and more different.

Freedom Equality Fraternity what is least shared is equality.

So it is the inequalities that come from the inheritance that must be removed to correct those inheritances. No one should be able to inherit more than 1 million euros, the rest must go to the state and constitutionally serve to reduce inequalities, the construction of social housing, schools hospitals.

for the rest rather than taxing income and capital, it is necessary to tax the consumption and the expenditure where each one pays according to what he consumes. Capital is a creator of value whereas consumption is destructive of value

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