The new Freedom Fries are wealthy French people fleeing their beloved country for tax havens in order to dodge the rising rates of income tax implemented by President François Hollande.
LVMH owner, Bernard Arnault became a Belgian citizen this month. He is of course entitled to privacy concerning this, however, the financial press are attributing it to the French tax increases. The French that are leaving have been described as pathetic and unpatriotic, however, I empathise with the tax flight.
The departing French are not moving their finances to tax free havens such as Bermuda or Switzerland, only to lower tax setting countries such as the UK and Brazil. Forbes magazine pointed out that payroll taxes in the UK are 20% but in France they are an eye-watering 85% so no wonder companies and people are reviewing their options.
I think one could swallow the bitter pill of increased taxation if governments could honestly and demonstrably behave in a way that showed competence in dealing with finances. The public sector is notorious for poor money mismanagement and inefficiency why should citizens pour their future into a bottomless pit?