Saturday, 26 October 2013

The French Strike

In around four weeks.....an interesting episode unfolds in France.  The French soccer league will have it's first strike in forty-odd years.  It will end up on US business news, and it will bring a bit of curiosity to most Americans.

The deal is simple.  France in 2014 will bring out a new taxation plan.  If you make more than a million Euro a year as salary ($1.3 million dollars).....then your company or organization must pay a 75-percent tax on this.  Note, it's not the individual paying the tax....it's the company.

So you sit there and pause over this for a while, and then you start laughing.

Basically, the company would have hype up costs to everyone within their line of consumers....to make up for the lost revenue.  Or you'd have to cut the salaries enough....to balance some gimmick budget up for your company....to survive.

As far as the government is concerned....it's "fair".  We should note, they haven't yet grasped the idea that the consumer.....the little guy....will get the bill at the end for this mess.

So the soccer players....the majority of them.....especially the foreign players brought into France to pump up the superior quality of soccer that people expect....are making a million or more per year. The clubs are looking at how this will play out and are faced with limited options.  Let go of superior players and keep a bare minimum around?  Perhaps pass the tax costs onto the consumer.....the fans.....and just accept their whining of significant ticket cost?

All around France....major companies are viewing this tax and the necessity of going after rich employees or managers.  They will all pass the cost along to consumers.....so you can expect inflation for 2014 to be higher than normal.

What happens in the spring of 2014?  Higher priced non-French players might be on the market and looking at the US soccer league as a place where they can display their skills and make what they think is a fair wage with no gimmick taxes....at least for right now.

There's a meeting coming up next week with the French President and some soccer officials.  There's not much hope over some resolution or extension.  There's not expected to be any waivers.  So the strike for late November will occur, and the fans will wake up and start to ask stupid questions in early December.

It's a sad turn of events.....when soccer fans get all disturbed and frustrated over their government.....and start to put heat on political figures.

So when you hear about some soccer strike in France....don't think soccer.....think taxes.  And it'll all make perfect sense.  

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