French Constitutional Council strikes down Hollande’s 75 percent tax on the rich
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Source: World Socialist Web Site
On December 29, France’s Constitutional Council ruled that President François Hollande’s proposal of a 75 percent tax on annual wage income above €1 million (US$1.32 million) was unconstitutional.
During the presidential campaign, even as Hollande’s Socialist Party (PS) prepared tens of billions of euros in social cuts, Hollande presented this tax as a temporary measure to ensure that the wealthy contributed their fair share to society. On this basis, the measure had broad support. Nearly three-quarters of the public supported it, according to opinion polls, amid deepening popular anger with social austerity and income inequality in France and across Europe.
The council’s rejection of the 75 percent tax came after objections from the right-wing opposition UMP (Union for a Popular Movement), which challenged the tax increase before the council, as well a number of business leaders and actors, including Gérard Depardieu. Depardieu moved to Belgium in protest to avoid the proposed tax increase.
The Constitutional Council based its rejection on technical grounds that the 75 percent tax applied to individuals, and was therefore incompatible with laws regulating income taxes, which are levied on households.
Eh bien. They're apparently going to try a different legislative tack, now. This also makes me wonder whether Hollande's whole thing was just an act to gin up popular support with a tax he knew wouldn't be enacted.