Hollande's 75% tax on rich could be watered down
QUESTIONS are being asked about the planned 75% tax on wealthy French individuals, one of François Hollande's key measures during the presidential election race.
The Financial Times reports on how business leaders have put pressure on the government in an attempt to water down the proposal.
The 75% tax rate on high earners became a key pledge in François Hollande's manifesto during the presidential campaign, although many people said it was unlikely to raise a great deal of income and was more of a symbolic action.
But with reports that some high earners in France were looking to head to London to dodge the tax rate, and the feeling that such a proposal was a criticism of entrepreneurial spirit, the pressure to change the tax has been increased.
It is reported that the rate might be reduced, non-salary income could be exempt and joint income would be treated differently, a hobbling of the initial hardline tax plans.
The final details of the 75% tax on wealthy French residents will be released later this month, when the Hollande government puts forward its budget for 2013.