Taxation is a destructive power.
Politicians on the left are well aware of this. Leftist politicians have always used this principle in their favor. Many of their leftist constituents want this; they vote exactly for it, and the politicians deliver. Taxes are used to punish those who have achieved success, or to “get rich”. The problem is, that without producers, economies collapse. It happens every single time. Now, it’s happening in France. The far left has been elected to power and the productive people are running for the exits.
The New Popular Front’s (NFP’s) surprise victory in France’s election has raised alarms for France’s rich, as the alliance of hard-leftists plans to impose a 90% income tax.
Financial advisers have reported a large influx of inquiries following Emmanuel Macron’s decision to call a quick election. Well-off French citizens were considering a move into more fiscally favorable countries such as Italy, Switzerland, or Spain.
The NFP’s victory over Macron’s center-right and the National Rally of Hard-Right (RN) on Sunday forced France’s Elite to consider their futures in the face of a tax-and-spend economic policy.
Does this sound familiar? In the United States, we also see a similar trend, with people moving from high-tax states such as New York, New Jersey, and California, to lower-tax states like Florida or Texas. It will also be familiar to the new French government coalition’s plans:
The hard-left coalition plans to spend a lot of money to boost the minimum wage, lower the retirement age to 60 years old, and freeze essential goods prices. It claims that this will cost EUR150 billion in three years.
Macron’s team warned that it could cost up to EUR300 billion, and would involve the abolition of tax credits and breaks for businesses as well as an increase in income tax.
Leftist governments have never accurately estimated the cost of their government giveaways. They always turn out to be more expensive than expected. The productive has never, except when forced to stay, meekly accepted the soaking – who can blame them?
As inevitable as sunrise, it’s happening. It’s inevitable. The wealthy, productive people who drive a country’s economy will leave, and France will suffer. Taxing is a destructive power, and in this case, the French electorate voted to destroy the economy. Over time, those who cannot afford to move to Madrid, Bern, or the Italian Riviera will be burdened by onerous taxes.
It’s baffling, isn’t it? No matter how many times socialism fails, someone will eventually claim that it wasn’t socialist. Or they may decide to try again and put the correct Top Men in power. It will again fail, just as it always has. The same thing happened in France as it did in the Soviet Union.
There is also the problem that affects nearly all of Europe, but that’s another story.
