• France edition
 
French government coy on new super tax
Finance minister Pierre Moscovici, pictured in December, 2012. Photo: Eric Feferberg/AFP

French government coy on new super tax

Published: 04 Feb 2013 16:50 GMT+01:00
Updated: 04 Feb 2013 18:18 GMT+01:00

France’s Finance Minister Pierre Moscovici, insisted on Monday that his government's controversial super tax would soon be back on the table. The minister however declined to specify at what rate the tax would be set, fueling speculation the government might be ready to lower it from 75 percent.

President François Hollande’s much publicised 75% tax on those earning more than €1 m was thrown out by France’s highest legal ,the Constitutional Council, in December on the grounds it was unconstitutional.

The council, known as "Les Sages", ruled the law was unconstitutional, partly because it applied to individual rather than household income, so was not consistent with France's usual method of taxation.

Last week Prime Minister Jean-Marc Ayrault was forced to deny reports that the government had decided to scrap the tax and on Monday Moscovici said details of the redesigned levy would be revealed by the "end of February".

However he refused to be drawn on whether it would remain at 75 percent, saying only it would be in the "same spirit" as the previous proposal.

According to a report by Europe 1 radio, Moscovici has been working with the PM to devise a tax plan that will avoid a second rejection from the constitutional council.

“I don’t want to risk censure again, and I’d like to stay close to the principles defined by the Constitutional Council,” said Moscovici.

If the tax is adjusted to affect households rather than individuals it would effectively increase the number of people affected by the new tax from 2,000 to 15,000, which have an impact on the popularity of what was Hollande's flagship pre-election pledge.

A source close to the president told Europe 1 on Monday that he would consider it "politically impossible" to abandon the hike on wealthy tax-payers.

A recent BVA poll for France’s i-TELE found that 61 percent of French people supported in principle the idea of a separate tax on earnings over €1 million, but only 21 percent thought the rate should be at 75 percent or above.

Dan MacGuill (dan.macguill@thelocal.com)

Don't miss...X
Left Right

Your comments about this article

Today's headlines
‘France needs to change its response to crime’
France prison's have hit a new record for overcrowding. Photo: Damien Meyer/AFP

‘France needs to change its response to crime’

This month France had more prisoners behind bars than ever before in its history, according to statistics unveiled on Thursday. An expert on the country's penal system told The Local that Sarkozy-era sentencing laws are largely to blame. READ () »

Burgundy 'will be ruined by wind farms'
Will Burgundy's worldwide reputation suffer because of windfarms? Photo: Jeff Pachoud/AFP

Burgundy 'will be ruined by wind farms'

The famous Burgundy region of France is synonymous with its vineyards but its image will soon be ruined, campaigners say, by the planned construction of new wind turbines. They say their chances of gaining UNESCO world heritage status are threatened. READ () »

VIDEO: Inside Paris’s first luxury hotel for cats
Here is a video look inside Paris's first-ever hotel just for cats. Photo: Lisa Winderberg/Flickr

VIDEO: Inside Paris’s first luxury hotel for cats

It was only a matter of time before the world’s most visited city extended its luxury lodging options to pets as well. Here's a look inside Paris’s first ever hotel just for cats, which naturally comes complete with a "gourmet" food menu and a games room. READ () »

French government's austerity denial 'a joke'
Some €50 billion cuts and freezes in benefits are not austerity, the French government says. That's a joke, say analysts. Photo: Pierre Andrieu/AFP

French government's austerity denial 'a joke'

After announcing a raft of spending cuts and benefits freezes this week the French government was at pains to stress that the country was not undergoing “austerity” as it faces a rebellion among its ranks. Analysts dismissed ministers' efforts as "a joke". READ () »

UK, US directors make cut for Cannes festival
British and American directors have been selected to show their films in Cannes. Photo: Gerard Julien/AFP

UK, US directors make cut for Cannes festival

Cannes film festival organizers unveiled on Thursday the A-listers and art house "auteurs" chosen to take part in this year's movie extravaganza on the French Riviera and it includes several well known Brits and Americans. READ () »

'Tarantula trafficker' snared in huge bug bust
French 'tarantula trafficker' caught with thousands of spiders. Photo: Ben Sutherland/Flickr

'Tarantula trafficker' snared in huge bug bust

In one of France’s biggest bug busts ever, a man was caught with thousands of living and dead tarantulas as well as other exotic insects he sold on the black market, media reports said on Thursday. READ () »

Euro wide hunt for teen girl and 'suicidal' prof
Police across Europre are involved in the hunt for suicidal teacher and teen French girl

Euro wide hunt for teen girl and 'suicidal' prof

Police across Europe are trying to track down a 15-year-old French girl who disappeared a week ago with her guitar teacher, a much older family friend thought to be in a suicidal state. READ () »

Pupils 'taught abortion is murder' at French school
French pupils claims they were taught 'abortion is murder' at school. Photo: Philippe Ksiazek/AFP

Pupils 'taught abortion is murder' at French school

A private religious school in Paris is under investigation from national education officials after students alleged they’d been told in class that 'abortion is in akin to murder'. The private school has ties to the controversial fundamentalist group Opus Dei. READ () »

Australian 'graffiti tourists' arrested in Paris
File Photo of a typically graffiti covered Paris Metro. Photo: Jacques Demarthon/AFP

Australian 'graffiti tourists' arrested in Paris

Two Australian tourists who had left their mark on the City of Light with a few cans of spray paint, were picked up by French police this week. It appears the pair of graffiti vandals were on an InterRail trip and planned to “tag the whole of Europe” READ () »

French football
French cup final will be all-Breton affair
Guingamp players celebrate after their victory over Monaco on Wednesday which sets up an all Breton French cup final against Rennes. Photo: Fred Tanneau/AFP

French cup final will be all-Breton affair

The French cup final will be an all-Breton affair after underdogs Guingamp produced a major upset by knocking out big spenders Monaco in their semi final tie on Wednesday night. Guingamp will now play fellow Brittany side Rennes in May's final. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Society
VIDEO: Take a look inside Paris’s first luxury hotel for cats
Education
French parents are the most laidback about their kids' education. True?
Tech
What do French TV viewers complain about the most? Yes it's English
Business & Money
French tax declarations: The key points to remember
Gallery
French slang: Everyday words you need to know (but use cautiously)
National
Paris cops told to ‘purge’ Roma from posh neighbourhood
International
VIDEO: ‘Anti-French’ Cadillac ad sparks anger in France. See why.
Features
Buying property in France? Here's 10 things you need to think about
National
What will the future map of France look like? The answer lies within.
Politics
'The 27 French regions aren't the problem, it's the 36,000 towns'
Culture
Ex underage call girl Zahia picked to embody Marie Antoinette
Gallery
Buying a house in France? Ten things you need to think about
Advertisement:
National
France bans work emails after 6pm! Sadly it's not quite true.
Opinion
Reader Rants: Why don't the French do charity? Is it down to taxes?
Society
VIDEO: The Paris zoo is back but this time the animals are in charge
National
This will be the most expensive road in France - Only €1.66bn for 12km!
Society
Only in France? Gourmet pensioners party lands village in hot water
National
What's the worst thing to do when you realise you're on the wrong train?
From showers to kissing: Anglos tell Twitter what's weird about France
National
'A big quake will hit France and there will be casualties' - Scientist warns
Culture
After all the dozens of books is France still worth writing about?
Sponsored Article
Why it pays to avoid banks when making overseas transfers
Opinion
Paris or the suburbs - where would you live?
National
VIDEO: Walk the line - crossing the Seine on a tightrope
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se