Happier Abroad Forum Community

Depardieu, in tax fight, gets Russian citizenship

French President Francois Hollande plans to raise the tax on earned income above €1 million ($1.3 million) to 75 percent from the current 41 percent, while Russia has a flat 13-percent tax rate.

I would differ with that equation when viewed differently.

That is also the income tax. The sales tax/VAT, property tax, capital gains, and other taxes are other variables to consider.

France has social benefits for French citizens and the best healthcare system in the world. It's cheaper to hire a trades person than do the job yourself.

Russia also has many social benefits for Russian citizens. Russian taxes 2012 http://www.deloitte.com/assets/Dcom-Glo ... Russia.pdf

Tax Deductions and tax allowances – Subject to certain restrictions, resident taxpayers may be able to claim deductions for pension, insurance, medical and educational costs, and a standard deduction applies to those with very low income. A 1-time deduction of RUB 2 million is granted on the acquisition of a residence, as well as for mortgage interest payments.
http://www.taxrates.cc/html/russia-tax-rates.html

01/03/2013 RUB 2,000,000 = 66280.20 USD

America has very few social benefits, none of the benefits are collective in nature. The majority of U.S. taxes goes towards wars, the U.N. foreign aid packages, the military complex, special interests, government pensions, Israel, multinational corporations, tax breaks for the wealthy, bribing dictators, special tax breaks, loopholes, and cronyism. There are no incentives to buy a home and it's cheaper to install items yourself rather than hire a trades person. Student loans are a major problem on the American youth. Property taxes are unreasonably high and no one ever owns their home. Mortgages will triple the value of what you owe on the home, taxes will keep adding up, and the counties continue to increase property taxes. Rent goes up every year as well, and salaries don't keep pace.

Inflation can be considered a stealth tax.

I would say Russia taxes <France taxes < American taxes

I would say Russia taxes <France taxes < American taxes

I would agree with the above: at least the French people get their money's worth even with the high income tax rate including universal healthcare and pensions, and unlike in the U.S., that money doesn't go to fund needless wars, Wall Street, or the military industrial complex. Russia is great in that their income tax is taxed at a flat 13 percent level regardless of income. They also have ZERO percent inheritance and estate tax! China also has no estate or inheritance tax and has no taxes on capital gains from stocks! Now, who is the socialist country and who is the capitalist country?

The average Russian makes a lot less than the average American.

You talk about no tax on capital gains from stocks...well that helps the rich who have money to invest in stocks. Inheritance ? Guess who inherits lots of property ? The rich people.

So I understand why Monsier Depardieu is mad but I can't blame the French government. Say what you want about the US but I don't think any of you grew up in Russia or other post-communist countries.

When I was last in Russia, the income tax was a flat 8% on all wages, a GST/VAT of 17% on almost all products. And they were about to introduce a land tax on your house - something like 1% of your house's value (which is too much for pensioners in Moscow). I don't know of any country in Europe that has cheaper taxes.