French President Francois Hollande said on Thursday he will continue to push for a new tax on the rich even after it was ruled void by the country’s highest authority on constitutional issues.
Mr. Hollande said, however, he would change his strategy slightly and require companies to collect the tax.
“Enterprises will pay the tax of 75 per cent on income of more than 1 million euros,” Mr. Hollande said in an interview with the television station France 2. Beyond that Hollande ruled out additional taxes for this year and next.
Mr. Hollande’s Socialist Party came to power last year promising to increase taxes on the wealthy.
Mr. Hollande’s proposed tax on the rich was ruled void in late December by the 12-member Constitutional Council shortly before it was to go into effect. It criticized the tax because it applied to individuals as opposed to an entire household. Top earners like Gerard Depardieu went into exile to avoid the heavy taxes.
An estimated 1,500 French taxpayers would be affected and they would have to pay on average an additional 150,000 euro in taxes annually. The special tax would raise about 210 million euro per year.
Mr. Hollande also supports a radical simplification of the administration in France to reduce the number of requests authorities make on French companies. Contributions to pensions should be stretched out over a longer time, he said, adding this is necessary because life expectancy has increased.