Back in November I wrote about the growing world trend to impose special taxes on the wealthy: Moving to Avoid Taxes? It's a Global Initiative. This article discussed the 75% income tax on French residents who earn more than 1 million euros (about the equivalent of $1.3 million USD) which was supposed to go into effect on January 1, 2013. Well, not so fast. Back on December 29, the Constitutional Council, which is the French court charged with insuring that French laws comply with the underlying principles of the French constitution, declared the 75% income tax on millionaires unconstitutional because the way it would be applied would be unfair and a breach of equality of taxes.
In response to the decision, France's president, François Hollande, has vowed to revamp the law and reintroduce it in 2013. Rumors are circulating that the revised law will provide for a lower tax rate but will be imposed for five years instead of two years as provided in the law that was declared unconstitutional.
- France's 75 Percent Tax Rate Struck Down on Constitutional Grounds
- Fate of France's 75% Tax Shows Limit of Ability to Tap Rich
- France hints at lowering 75% tax rate
- Do the Rich Move to Avoid Income Taxes and Estate Taxes?
- Would You Move to Avoid Taxes?
- How to Reduce or Even Eliminate Your Estate Tax Bill