THE highest earners in France have been targeted by the first budget of François Hollande's government as he attempts to plug a €37 billion hole.
People earning over €150,000 now face a tax rate of 45% raising an estimated €320 million, while those earning over one million euros will be hit by a 75% bringing in around €210 million per year.
A number of tax niches have been targeted, while capital income will be treated as earned income and bring in €3 billion in 2013 to help the government attempt to cut the annual deficit to the eurozone limit of 3% of GDP next year.
The government has based its prediction upon growth in the French economy of an expected 0.8% next year, and 2% each year from 2014 to 2017. Figures that have been questioned by many.
Conseil des ministres du 28 septembre 2012
Projet de loi de programmation des finances publiques pour les années 2012 à 2017 et projet de loi de finances pour 2013.
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