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French top court overturns 75-pct upper tax rate, Hollande reacts "calmly"

PARIS, Dec. 30 — French President Francois Hollande "calmly" welcomed the Constitutional Council's decision of cancelling the 75-percent upper tax rate, asking the government to prepare a new measure.

French channel BFMTV reported the news, citing the entourage of the head of state as saying that "President heard the news calmly, it was one of the possible hypotheses."

The entourage added that "he would have several discussions with Prime Minister Jean-Marc Ayrault on this subject" and would ask the government to "prepare a new measure taking into account the principles set out by the Constitutional Council," in terms of the 75 percent upper tax rate.

The president's entourage also noted that Hollande "will obviously make a new measure in a future Finance Bill which could restore an exceptional taxation over two years, 2013 and 2014."

The French Constitutional Council Saturday morning rejected a 75-percent income tax rate on earnings over 1 million euros (1.32 U.S. dollars) per year due to be introduced in 2013 by the government, in an effort to make the rich contributing more to help the debt-laden country out of the economic crisis.

The policy has been under attack after being recently approved by the government and has caused some wealthy citizens, including famous French actor Gerard Depardieu seeking tax exile in Belgium.

The Constitutional Council denied the proposal because it sees the practice against the equality in public charges.

Ayrault had reacted earlier to the decision, promising to "take actions" and "new measures will be presented in the framework of the next Finance Act." (PNA/Xinhua)

CTB/RSM

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