The French Constitutional Court has invalidated the controversial 75% tax on income tax above one million euros, one of the cornerstones of the 2103 budget law approved by the socialist government of President François Hollande. which has already caused many "tax exoduses", including that of Gerard Depardieu.
The Court held that the tax violates the principle of equality as it is calculated on each natural person, as opposed to income which is on a family basis. Instead, the 20 billion euro tax credit for companies contained in the 2012 corrective budget has been approved.
Through Prime Minister Jean-Marie Ayrault, the Government has announced its intention to propose "a new system in accordance with the principles set out in the decision of the Constitutional Court, which will be presented in the context of the next financial meeting".
