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| Europe |
| French Elvis helps Sarkozy by becoming tax exile |
| 2006-12-17 |
| Johnny Hallyday is the closest thing France has to Elvis, so the veteran rocker's announcement that he is moving across the border to Switzerland to escape high taxes has come as a bombshell. In the highly politicized atmosphere of pre-election France, the singer's decision is taking on political dimensions, too. Score one for presidential hopeful Nicolas Sarkozy: If the conservative who is promising lower taxes wins next spring's elections, Hallyday says he may move back. "Black is black, there's no more hope," Hallyday sang in one of his many hits. And the way he tells it, being wealthy in France has become hopelessly expensive. "Like many French, I'm sick of paying what is imposed on us in the way of taxes," the grizzled icon, known simply as "Johnny" to his fans, said this week. At 63, Hallyday is thinking about the hereafter, too. He said he wants to protect his three children from inheritance tax. "I agree to paying taxes. But inheritance and all that, I don't agree with." Newsmagazine "L'Express" scored the scoop. It said Hallyday will spend just over half the year based in Gstaad, Switzerland, starting at the end of this month, to benefit from lower taxes. To benefit from the different tax rate, Hallyday would have to live there for six months and a day each year. Many cantonal authorities allow prominent foreigners to pay a fixed tax based on expenses, such as rent, or assets in Switzerland rather than a percentage of their income. Swiss media reported that the singer is spending millions of dollars on a chalet in the posh resort. The wealth-friendly Alpine nation is already a haven for many other French celebrities and entrepreneurs, among them skier Jean-Claude Killy, tennis player Amelie Mauresmo, race driver Alain Prost and singer Charles Aznavour. The loser in the whole affair seems to be President Jacques Chirac. He and Hallyday were once close. Hallyday campaigned for Chirac during his losing election run in 1988. Chirac repaid the favor after he became president in 1995, decorating Hallyday with the Legion of Honor, France's highest award. But Hallyday has made clear that he is Sarkozy's man this time. Sarkozy was once a Chirac protege and they are in the same party but are now rivals. The singer caused a stir when he showed up in dark glasses at a party meeting in September, and said this week that he would move back to France if Sarkozy is elected and lowers taxes. Sarkozy has proposed that income tax be limited to no more than 50 percent -- down from a 60-percent limit that will go into effect in January -- and that "small and medium" sized fortunes be exempt from inheritance tax. Without naming Hallyday, Sarkozy said it was a sign of a real problem in France that "so many of our artists, our creators, our researchers ... tell themselves that they have to leave." "I would like people to think that they can live in France even when they succeed," he said. Chirac, however, was less forgiving. "As much as I appreciate the artist, I do somewhat regret his behavior as a citizen," he said Friday. |
| Posted by:ryuge |
| #1 income tax be limited to no more than 50 percent No problem; they'll just raise the VAT 10%. Or maybe the tax on property. Or the transfer tax on investments. Or... |
| Posted by: Jackal 2006-12-17 19:55 |