French 75% tax rate struck down by constitutional council

France’s constitutional council has struck down a top income tax rate of 75% introduced by Socialist President Francois Hollande.

Raising taxes for those earning more than 1 million euros has been a flagship policy for Francois Hollande.

The policy angered France’s business community and prompted some wealthy citizens to say they would emigrate.

Francois Hollande’s government said it would rework the tax, due to take effect in 2013, to meet the council’s complaints.

In its ruling on Saturday, the Constitutional Council said the new tax rate “failed to recognize equality before public burdens” because, unlike other forms of income tax, it was to be applied to individuals rather than households.

For example, that meant a household in which one person earned more than 1 million euros would pay the tax, but a household in which two people earned 900,000 euros each would not have to pay.

France’s constitutional council has struck down a top income tax rate of 75 percent introduced by Socialist President Francois Hollande

The council also rejected new methods for calculating the tax.

But Prime Minister Jean-Marc Ayrault said the government would press ahead with the new tax rate.

“The government will propose a new system that conforms with the principles laid down by the decision of the Constitutional Council,” he said.

The new rate was seen as largely symbolic since it would have only applied to some 1,500 people for a temporary period of two years.

But along with other tax rises, it has still been the subject of fierce debate in France.

French actor Gerard Depardieu recently announced he was moving to Belgium to avoid taxes, sparking a furious reaction from some on the left.

There was also speculation that people employed in high-income jobs like banking and finance would move elsewhere, including to London.

Francoise Hollande campaigned against the austerity policies used in many European countries affected by economic crisis, favoring higher taxes rather than spending cuts to bring down the deficit.

The 75% rate for high earners was included in the government’s 2013 budget, approved by parliament in September.

Diane A. Wade

Diane is a perfectionist. She enjoys searching the internet for the hottest events from around the world and writing an article about it. The details matter to her, so she makes sure the information is easy to read and understand. She likes traveling and history, especially ancient history. Being a very sociable person she has a blast having barbeque with family and friends.

Recent Posts

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

5 hours ago

White House 2024: Voter Fraud Claims Flood Social Media

Misleading allegations, rumours and outright lies about voting and fraud are flooding online spaces in…

2 days ago

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

4 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

4 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago