In a recent piece for this journal, I talked about the interesting case of Gerard Depardieu, the famous French actor who returned his passport to the Socialist government and moved to Belgium (and now has a Russian passport) after the Socialists took power and raised taxes to astronomical heights. Depardieu’s departure touched off a firestorm of media controversy in France.
Well, more famous flush French are following Depardieu’s lead. The first is Bernard Arnault, the richest man in the country. Arnault, CEO of luxury retail-brand conglomerate LVMH, has moved his personal fortune of nearly $9 billion out of France and into Belgium, “for family inheritance reasons.”
In other words, he wants his family — his five children, to be precise — to be able to receive the bulk of what his business acumen has won him. And no doubt the Socialist’s goal of confiscating 75% of what he earns is also a motivating factor for Arnault.
Arnault made his billions by building iconic brands such as fashion lines Christian Dior and Louis Vuitton, and booze brands such as Moet & Chandon and Hennessy.
Belgium, by the way, has a 3% inheritance tax, much less than France’s current 11% (which is on its way up); it has no wealth tax. And its capital gains and income tax rates are much lower than what the Socialists plan for France.
Even more noteworthy is the announcement that former French Prime Minister Nicolas Sarkozy is preparing to move to London — along with his famous supermodel wife Carla Bruni. He plans to set up a modest investment fund of perhaps $1.6 billion, from which he will no doubt earn a fair amount. By moving to London he will escape the 75% income tax.
No doubt an additional motive for his flight is that he is being investigated for various funding scandals as well as allegedly using public money to pay for opinion polling for his campaign.
It just gets more amusing by the day . . .