This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bowing In 'pigeon' Fight, France Slashes Taxes

By ELAINE GANLEY and SYLVIE CORBET

PARIS (AP) â¿¿ President Francois Hollande announced on Monday a series of measures to encourage the French entrepreneurial spirit, including drastic cuts in capital gains taxes â¿¿ up to 65 percent â¿¿ for the sale of small companies and a plan to make France start-up friendly.

Hollande, looking to stimulate flagging growth and cut into the nation's 10.6 percent jobless rate, also ordered the Interior Ministry to introduce visas for foreign entrepreneurs, and to speed up the process to make the country more attractive to foreign professionals.

"Half of the entrepreneurs of Silicon Valley are immigrants," Hollande said in a speech before some 300 entrepreneurs at the Elysee Palace. "We must waste no talent."

The Socialist president has been viewed by some as an anti-business leader, and infuriated entrepreneurs last year by proposing increased taxes on investments. In response, entrepreneurs, calling themselves "pigeons" â¿¿ French slang for someone who has been duped â¿¿ launched an online opposition campaign that quickly got tens of thousands of "likes" on Facebook, and trended on Twitter.

Hollande, trying to return to the good graces of entrepreneurs, said he was undoing that plan, and simplifying the system.

"There are no less than 40 formulas for dealing with capital gains ... 40 different ones. And now there will be but one," Hollande said.

He enumerated a graded scale for tax breaks on capital gains for entrepreneurs who bought start-ups: 65 percent if the company has been held at least eight years and 50 percent after two years. The tax advantage rises to 85 percent when companies are less than 10 years old, are being passed on to family members or the owner is retiring.

Experts say Hollande's initial plan would have meant an effective tax rate of 60 percent, compared with 15 percent on U.S. capital gains.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs