Paris, France (4E) – France’s constitutional court approved President Francois Hollande’s plan to tax people with salaries above 1mn euros at 75 percent for this year and next.
Hollande’s so-called “millionaires’ tax” has become a symbol of his administration’s campaign promise to create a level playing field for the middle class by getting more from the mega-rich to help the country emerge from the crisis.
In December 2012, members of the Constitutional Council struck down the government’s initial proposal that consist of a 75-percent tax that high earners should pay on the part of their incomes over 1mn euros, arguing that 66 percent was the legal maximum for individuals.
This year, Hollande revived the plan and made it apply to salaries and employers will be paying it instead of individuals. The plan also sets a limit to the total amount at 5 percent of a company’s revenue.
Hollande’s proposal requires companies to pay a 50 percent duty on salaries over 1mn euros ($1.4mn). Along with other taxes and social charges, the rate may reach 75 percent, according to the court decision published Monday.