2 Jan 2013

Hollande still intent on high tax

7:33 am on 2 January 2013

President Francois Hollande of France still plans to raise the top rate of income tax after his 75% plan was struck down on technical grounds.

In a national address on New Year's Eve, he said the law would be redesigned. However, the BBC reports he did not mention the 75% figure.

The president also promised "all efforts" towards cutting unemployment. The number of jobless people is now more than three-million in France.

Mr Hollande has been criticised for lacking direction and his popularity levels have plummeted, since he took power in May.

The president said he would resubmit his flagship policy of raising income tax for those earning more than 1 million euros (£817,000) per year.

It was rejected by the Constitutional Council on Saturday because, unlike other forms of income tax, it was to be applied to individuals rather than households.

Mr Hollande said while the law would be "redesigned" its objective would remain the same.

The BBC reports the policy has angered business leaders and the opposition, who say it discourages entrepreneurship and wealth-creation.