French 'millionaire's tax' gets go-ahead from Constitutional Council
PARIS (Reuters) - France's Constitutional Council gave the green light on Sunday to a "millionaire's tax", to be levied on companies that pay salaries of more than 1 million euros (S$1.74 million) a year.
The measure, introduced in line with a pledge by President Francois Hollande to make the rich do more to pull France out of crisis, has infuriated business leaders and soccer clubs, which at one point threatened to go on strike.
It was originally designed as a 75 per cent tax to be paid by high earners on the part of their incomes exceeding 1 million euros, but the council rejected this, saying 66 per cent was the legal maximum for individuals.
The Socialist government has since reworked the tax to levy it on companies instead, raising the ire of entrepreneurs.