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French panel overturns 75 per cent tax on ultrarich

 

Associated Press
Saturday 29 December 2012 06:49 EST
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The actor Gérard Depardieu is the latest Frenchman to look
for shelter in Belgium François Hollande imposed a series of tax increases by on the wealthy
The actor Gérard Depardieu is the latest Frenchman to look for shelter in Belgium François Hollande imposed a series of tax increases by on the wealthy (Getty Images)

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A French constitutional panel has thrown out a plan to tax the ultrawealthy at a 75 per cent rate, saying it was excessive.

The constitutional council ruled today that the highly contentious tax, which President François Hollande promised to impose while campaigning, was unfair. It was intended to hit those with incomes over 1 million euro (£820,000).

The French government approved the tax in its most recent budget, but even before many said it would do little to stem the country's mounting fiscal problems and would drive away the wealthiest citizens. Hollande's popularity, meanwhile, has been tanking as the country's unemployment continued its rise for the 19th straight month.

In recent weeks, Gérard Depardieu — France's most famous actor — moved to Belgium to avoid his home country's high taxes.

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