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'Tax the rich' rethink in Paris


economy

'Tax the rich' rethink in Paris

With a top French court having thrown out a proposed supertax on the rich, the Paris government is looking at how it can be changed.

The law has to be redrafted in response to the Constitutional Council’s ruling that a 75 percent tax rate for those earning more than one million euros per year was unfair.

The Council said that it would weigh too heavily on high-earning individuals while sparing wealthy couples.

Reportedly an amended tax will be introduced “at the latest” in next year’s budget.

President Francois Hollande’s Socialist government had touted the supertax as a way of making the wealthy contribute more to shoring up public finances. Critics said it would be counterproductive, bringing in relatively little money while driving away investors.

In a statement, Finance Minister Pierre Moscovici said the rejection of the wealth tax would cost the government 210 million euros in lost revenue in 2013.

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