Francois Hollande, the President of France, has received approval from the country’s constitutional court to continue with his plan to tax wages above 1 million euros at 75 percent for this year and the following year. The first proposal to put the change into effect had been turned down by the constitutional court in December of last year because the tax applied to individuals and not households, according to Bloomberg News. 60 members of parliament and more than 60 senators filed their opposition, which caused the court to examine the proposed tax.
Francois Hollande announced the 75 percent tax back in February 2012 as part of his presidential campaign to appeal to his Socialist base. This has become a symbol of his government’s record high taxation rate.
President Francois Hollande has received approval from the country’s constitutional court. Hollande revived the plan this year, making it apply to salaries and be paid by employers rather than individuals. He will proceed with his plan to tax salaries above 1 million euros at 75 percent for this year and next.
In the proposal the companies will have to pay a 50 percent duty on wages above 1 million euros, that is $1.4 million. In combination with other taxes and social charges, the rate will amount to 75 percent of salaries above the threshold, the court wrote in a published decision.
The Economy Ministry said in an e-mailed statement that, “The companies that pay out remuneration above 1 million euros will, as expected, be called upon for an effort of solidarity on remuneration paid in 2013 and 2014.”
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