France Council Blocks 75% Tax on Millionaires
Government plans to resubmit plan soon
By John Johnson,  Newser Staff
Posted Dec 29, 2012 11:31 AM CST
In this 2010 file picture, French actor Gerard Depardieu tests a glass of wine. He was infuriated by the millionaires' tax.   (AP Photo/ Roberto Pfeil/dapd, File)

(Newser) – French President Francois Hollande's controversial plan to levy a 75% tax on income above 1 million euro ($1.3 million) has been rejected by a constitutional council, reports Reuters. The tax had been set to go into effect in 2013, despite the protests of many the nation's high earners, most notably actor Gerard Depardieu. The government plans to rework the measure and resubmit it.

Hollande stands a chance of success because the council's objection seemed narrow: It says the law as written could be applied unfairly. For example, a couple who made just under 1 million euro each would escape the rate. But another couple, with one earner above the threshold and the other below it, would not. The planned tax rate wouldn't affect many people and is "largely symbolic," reports the Telegraph. But Depardieu and others are threatening to leave for good if it becomes law.