Comments by "" (@A86) on "President Taxes The Rich (In France)" video.

  1. If you think the average rich person in France actually pays 75% of their income in tax you're naive or uninformed. Several things: 1) 75% is the marginal income rate.  2) 75% is a STATUTORY tax rate. It's not what the average rich person actually pays. The EFFECTIVE tax rate is much, much lower after all deductions, tax-write offs, exemptions, etc. are factored in. The Effective rate is likely closer to 25-35%. Just like the US Statutory federal income tax rate for rich people is 39.5% but the Effective rate is 14-18% for the average rich person. 3) This is a marginal tax on their INCOME. Most rich people's annual money comes from dividends and capital gains. Not income (their salary). The average rich person's salary only makes up 10-20% of their annual revenue. So, factoring that in, if a rich person earns 20% of their annual revenue from income and the tax rate on that income is 75%, the total net tax rate in their annual revenue is only 15%. (75 * 0.20 = 15) That means only 15% of their total annual revenue over a certain threshold was taxed that year. 
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  2. Omphi193 - By "rich" I define it the way economists define it: a person with personal revenue in excess of $250,000-350,000/year. In France it would only be people with income over that mark who would be affected by this tax rate. A small business owner who earns $140,000/year is a capitalist, but is not "rich". "Average" means typical or the majority. Not necessarily a specific number.  "What are your numbers in relations to" The 75% tax rate is the marginal federal income tax rate pay people on every dollar they earn over over that $250-350,000/year mark. 75% is the statutory rate (the number they would pay by default without all the other factors). The effective rate is the rate they ACTUALLY end up paying after deductions, exemptions, write-offs, credits, etc. are factored in. The 75% tax rate is on personal income (salary) ONLY. Not on dividends or capital gains. Most rich people gain the majority of their personal annual revenue from capital gains and dividends, not their salary. Most rich people DO NOT earn most of their money from paychecks like you and other Working Joes. A lot of people work from the false assumption that rich people get paid paycheck-to-paycheck like most people. They don't. "You seem to understand how the french economic system works in detail than I" To be honest I understand the American tax system much more in-depth but the French system works pretty similar to how our tax system works. They seem to have fewer deductibles and less exemptions, though. That's probably why the French effective income tax rate is higher than the American effective income tax rate. Theirs is like 22-25% for most rich people, ours is like 14-18% for most rich people.
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