It is an old saw that you get less of what you tax. Thus, when Tsarist Russia placed a tax on beards, Russians shaved off their beards. So it is with wealth.
To wit, as France's Socialist government pursues higher taxes on the wealthy, France's wealthy flee to "'wealth-friendly' nations like Britain and Switzerland." France plans to tax incomes over 1 Million Euros at 75%! An increase from the current 41% rate! Wealthy Frenchmen and women won't be taking a pay cut to avoid the tax, rather they will be severing their ties with the sovereign imposing the excessive taxes.
And how is England responding to the potential for France's wealthy to relocate there?
Prime minister David Cameron angered the French last month when he said he would "roll out the red carpet" to wealthy French citizens and firms who wanted move out and pay their taxes in Britain.
He told the B20 business summit in Mexico in June: "I think it's wrong to have a completely uncompetitive top rate of tax.
"If the French go ahead with a 75 per cent top rate of tax we will roll out the red carpet and welcome more French businesses to Britain and they can pay tax in Britain and pay for our health service and schools and everything else."
We can't help but notice that the American COAST Chapters fight higher taxes while the French Chapters simply flee. They are French after all!
The point stands though, when you want less of something, you tax it. And now France stands out as yet another shining example of what happens when you tax wealth, you get less of it.