Hollande’s millionaire tax struck down

France’s highest legal body, the Constitutional Council (Conseil Constitutionnel), announced on the 29 December 2012 that it was overturning the Socialist government’s flagship 75% income tax rate for high earners, marking an embarassing setback for President François Hollande.

Subsequently, the government modified the proposal to make companies liable for the 75% tax rate for salary paid above the €1m mark.

The Union of Professional Football Clubs (UCPF) had argued that the tax would make it impossible to compete with other European clubs, driving the country’s most talented players abroad.

in October 2013 it was announced that President Hollande had rebuffed protests against the tax on high earners, prompting football clubs to press on with a planned 'strike'.

In December 2013 France’s Constitutional Council upheld President François Hollande’s 'millionaires' tax'.

ESO: Background information: Hollande faces questions on tax pledge http://www.europeansources.info/record/hollande-faces-questions-on-tax-pledge/

France24, 29.12.12: Top French court overturns 75 percent tax rate for rich http://www.france24.com/en/20121229-france-tax-hollande-depardieu-75-percent-tax-rate

BBC News, 29.12.12: French 75% income tax struck down by constitutional council http://www.bbc.co.uk/news/world-europe-20864114

Website: Constitutional Council of the French Republic http://www.conseil-constitutionnel.fr/conseil-constitutionnel/english/homepage.14.html

France24, 01.01.13: Hollande pledges to reverse unemployment in 2013 http://www.france24.com/en/20121231-hollande-pledges-reverse-unemployment-2013

The Local.fr, 31.12.12: Hollande's 75 percent tax 'illegal' - court http://www.thelocal.fr/page/view/hollandes-75-percent-tax-illegal---court

The Local.fr, 31.12.12: Depardieu: Court tax ruling 'changes nothing' http://www.thelocal.fr/page/view/depardieu-court-tax-ruling-changes-nothing

BBC News, 01.01.13: Hollande vows to revive French supertax http://www.bbc.co.uk/news/world-europe-20881383

France24, 07.01.13: French Socialists struggle with millionaire tax http://www.france24.com/en/20130107-france-millionaire-tax-socialist-government-hollande

BBC News, 31.10.13: Hollande defends 75% tax despite football strike threat http://www.bbc.co.uk/news/world-europe-24766254

France24, 01.11.13: Hollande refuses to exempt footballers from 75% tax http://www.france24.com/en/20131031-france-hollande-refuses-budge-75-percent-tax-football-ligue-1

France, 29.12.13: French council upholds Hollande’s 'millionaires' tax’ http://www.france24.com/en/20131229-french-constitutional-council-upholds-hollande-millionaire-75-percent-tax/

BBC News, 29.12.13: France's 75% tax rate gains approval by top court http://www.bbc.co.uk/news/business-25541739

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