Avoiding Taxes Requires Watching the Politics of a Nation with a Huge National Debt

Successful tax planning looks for trends.  Tax planners look down the road and around the bends.  They structure now for tomorrow.   They don’t rely on year-end tax planning.

A recent article (in France) jumped out at me as I read about the American Republican Parties pretending to “reform” taxes.   France government subsidies and immigration are worst than the U.S. (thankfully).  However as the U.S. National debt combine with many states and cities facing insolvency, the battle between the have nots and the have is  looming.   New York has proposed a new tax that applies only to the haves.

Keep in mind, as you read this article, former President Obama, at an Orange County rally, told the audience those with household incomes exceeding $250,000 were the “rich”.   The $250,000 threshold continues to be the red line in the United States.   

You think it can not happen in America?  Since Democrat  Jerry Brown became governor, income taxes have increased by 30%.  The U.S, has had a tax rate up to 94%.  Add to that your state income taxes, I hope you can see that you must plan now for the future. 

Keep this in mind as you read this article.  

For your small business tax planning, you should watch the trends… which is higher taxes unless you are active in tax planning.   Great tax planning is not year end tax planning.  It is long term with a separate plan for each part of your business. 

I had the article translated  and it is below . 

Economic inadequacy or social justice? For thirty-six years, “the tax on the rich” made controversy. Emmanuel Macron wants to reform it, distinguishing between real estate and financial investments.

EWB Statement

Since its inception in 1982, the performance of the ISF has been erratic.

 
 

Exit the ISF, soon the IFI. Emmanuel Macron wants to replace, by 2019, the emblematic solidarity tax on the fortune by a tax on the property fortune. The IFI would keep the same threshold, the same scale, the same abatement on the principal residence and the same ceiling (maximum total taxation of 75% of the income of a household). 

However, its tax base would be drastically reduced since it would apply only to real estate assets, excluding all financial investments (equities, bonds, life insurance, PEA, etc.) and other assets (gold, jewelry, cars, boats, …), which would divide his recipe by two. The objective of the president: “Privilege the risk in the face of rent” , and therefore orient savings towards productive investment and financing companies.

The reasoning convinces, the less measure. “Admittedly, a large owner who lives on rents in his buildings is an annuitant but just as much as a holder of large life insurance contracts filled with government bonds,” notes Philippe Bruneau, president of the Cercle des fiscalistes. 

Conversely, investors in office real estate or new rental housing participate in growth like those who place their money on the stock market. “ Philippe Askenazy, a researcher at the Paris School of Economics, agrees: ” The line between “good” and “bad” capital is porous. And we can fear in advance of tax optimization schemes intended to conceal the land. “

“It is mainly a political skill, to soften it without abolishing it,” said Eric Heyer, economist at the OFCE. Because the ISF, if it is small in its contribution – paid by 1% of the taxpayers, it represents less than 2% of the revenue of the State – it is enormous by its symbolic charge. 

Totem of the left which has made it the emblem of social justice since its creation by François Mitterrand in 1981, scarecrow of the right which denounces its misdeeds but has not dared to discard since its repeal is deemed to have cost Jacques Chirac the election of 1988, the ISF remains popular: according to the polls, for twenty years, more than two thirds of the French oppose its suppression. “Between Christian tradition and republican egalitarianism, 

The French are complex on the questions of money and defying the rich, analyzes Roland Cayrol, political scientist. To repeal the ISF would therefore be a gift to the rich … “

Here is the Key to your small business  tax planning in the U.S. – Mr.  Roland Cayrol  expresses the sentiment of the “people”   To repeal the ISF would therefore be a gift to the rich … ” 

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