French High Court calls 75% tax rate unconstitutional

Barack Obama should love this ruling. The reason the judges are overturning the law is because it doesn't treat all taxpayers equally. That means it's "unfair": The French constitutional council has rejected a government proposal to levy a 75% tax on high earners. The tax on incomes over €1m has divided opinion in France and encouraged some to set up homes outside France. The actor Gérard Depardieu bought a house in Belgium, prompting the French prime minister, Jean Marc Ayrault, to say: "It's pathetic really. Paying taxes is an act of patriotism and we're asking the rich to make a special effort here for the country." In response Depardieu offered to give up his passport. The government will redraft the tax proposal and resubmit it, Ayrault's office said on Saturday. The council's ruling would not obstruct the government's determination to reduce the public deficit, it added. The high tax rate was the centre piece of President François Hollande's election campaign...(Read Full Post)