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| French 75% income tax struck down by constitutional council | French 75% income tax struck down by constitutional council |
| (35 minutes later) | |
| France's constitutional council has overturned a top income tax rate of 75% introduced by Socialist President Francois Hollande. | France's constitutional council has overturned a top income tax rate of 75% introduced by Socialist President Francois Hollande. |
| Raising taxes for those earning more than 1m euros (£817,400) has been a flagship policy for Mr Hollande, who was elected in May. | Raising taxes for those earning more than 1m euros (£817,400) has been a flagship policy for Mr Hollande, who was elected in May. |
| The policy angered France's business community and prompted some wealthy citizens to say they would emigrate. | The policy angered France's business community and prompted some wealthy citizens to say they would emigrate. |
| The new tax rate was due to take effect in the new year. | The new tax rate was due to take effect in the new year. |
| In its ruling on Saturday, the Constitutional Council said the new tax rate "failed to recognise equality before public burdens" because unlike other forms of income tax, it was to be applied to individuals rather than households. | |
| The council also rejected new methods for calculating the tax. | |
| The new rate was seen as largely symbolic since it would have only applied to some 1,500 people for a temporary period of two years. | |
| But along with other tax rises, it has still been the subject of fierce debate in France. | |
| French actor Gerard Depardieu recently announced he was moving to Belgium to avoid taxes, sparking a furious reaction from some on the left. | French actor Gerard Depardieu recently announced he was moving to Belgium to avoid taxes, sparking a furious reaction from some on the left. |
| There was also speculation that people employed in high-income jobs like banking and finance would move elsewhere, including to London. | There was also speculation that people employed in high-income jobs like banking and finance would move elsewhere, including to London. |
| Mr Hollande campaigned against the austerity policies used in many European countries affected by economic crisis, favouring higher taxes rather than spending cuts to bring down the deficit. | Mr Hollande campaigned against the austerity policies used in many European countries affected by economic crisis, favouring higher taxes rather than spending cuts to bring down the deficit. |
| The 75% rate for high earners was included in the government's 2013 budget, approved by parliament in September. |