French tax on millionaires vetoed

The French Constitutional Court has vetoed a law creating a special 75% tax on income over €1 million per individual.

The so-called “millionaire super-tax”, which was intended to take effect on January 1, was one of the election promises by President François Hollande, who has already promised to reformulate the proposed law.

The Constitutional Court made the veto decision based on the grounds that the tax would violate “the equality principle, when facing public burdens”, and also because of the proposed calculation method for the tax, in particular, integrating tax capital profits from which the tax payer “wouldn’t have benefited yet” in the calculations.