In France, the new Social President Francois Hollande is proposing a tax of 75% on all income earned over a million euros a year. This is roughly one and a quarter million U.S. dollars. Among France’s rich elite, this has prompted a discussion of whether or not it would be better to flee the country rather than pay the taxes.
In the United States, the very rich do not flee the country they simply send their money abroad, like Mitt Romney, to avoid their taxes. While that is a specific example of Romney’s tone-deafness, the issue of tax avoidance is a big problem in the United States and other countries wishing to reduce deficit and debt.
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