‘Millionaire Tax” approved by the French constitutional council
The French Constitutional Council approved the government’s controversial “millionaire tax” proposal for companies to pay 75% tax on annual salaries exceeding €1 million ($1.375 million USD), in line with President Francois Hollande’s drive to limit executive pay at a time of economic hardship. To reduce France’s budget deficit, the increase in tax raised discontent among the business leaders and the football clubs.
About Millionaire Tax
The super tax is one of the President Francois Hollande’s signature policies, to pull out France from its economic crisis.
- The tax will include a 50% levy on the portion of wages exceeding €1 million paid in 2013 and 2014. It will be levied on companies, not the individual.
- The tax, for earnings in 2013 and 2014, will hit around 470 companies and a dozen football clubs. It is expected to raise €210 million a year.
- Including social contributions, the rate will effectively remain about 75%, though the tax will be capped at 5% of a company’s turnover.
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