Monday, October 8, 2012

BloggeRhythms 10/8/2012

A headline on Drudge from a French news outlet, France 24, just caught my eye:  “Rich businessmen pulling out of France as tax-hit looms.” 
 
The article began by quoting a manager at Daniel Feau, a real-estate broker specializing in high-end property, who said, “A flood of top-end properties are hitting the market as businessmen seek to leave France before stiff tax hikes hit." Real estate agents and financial advisers say it's nearly a general panic. Some 400 to 500 residences worth more than one million euros ($1.3 million) have come onto the Paris market. 
 
The sell-off is in response to the tax plans of France's new Socialist President Francois Hollande and having a noticeable effect whereas the plan is to raise the tax rate to 75 percent on income above 1.0 million euros per year and sharply increase taxes on capital gains from the sales of stock and company stakes.

However, it was the following paragraph from the article that started me typing. “French entrepreneurs have complained vociferously against a proposal in the Socialist's 2013 budget to increase the capital gains tax on sales of company stakes, which they argue will kill the market for innovative start-up companies in France.”

Now, I realize that these events are going on in France, which has almost nothing in common businesswise with the U.S. Nonetheless, though, it does demonstrate how business types think and react no matter where they’re located. Because there’s a fundamental commonality among them to the extent that these folks tend to fend for themselves and are driven by a will to succeed, not a grand desire to carry others through life on their backs.

And don’t get me wrong, I’m not saying these folks are selfish, self-serving, or greedy by nature. My point is the reverse. They’ll happily support however many others they need to help them, and keep hiring as their growth continues because that makes economic sense, and in fact is the basis of the entire financial success of our nation. Which brings me right back to the most simple of questions.

Why is it that typical Democrats, and Socialists particularly, don’t grasp the basics of the most fundamental economics. Because although the French movers and shakers are far more dramatic by picking up their chips and leaving Dodge altogether, we see exactly the same trend here. 
 
When government threatens higher taxes, over-regulates, gets over-involved, and makes too many nonsensical bureaucratic demands, businesses stop hiring, real estate doesn’t get purchased, tax revenues decline, the economy stagnates and everyone in the nation winds up with less. In fact, the entire system goes into reverse. 
 
So, perhaps it’s time for Democrats to realize that businessfolks aren’t bad guys by any stretch, and perhaps it’s time to stop and do some learning about how economies really work. Because just like in today’s  France, I don’t think it will be long now before the one’s paying all the bills here at home are just going to pack up and move somewhere else. 

That’s it for today folks.

Adios

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