by Malcolm Curtis|The Local, France|September 7, 2012
A tax on the rich proposed by President François Hollande when he campaigned for the presidency may not be quite as draconian as initially feared, according to a new report.
As a candidate, the Socialist party leader promised in February to slap a 75 percent tax on all French residents earning more than one million euros a year.
But Le Figaro says the measure will be softened after heavy lobbying from business executives and tax experts who warned that such measures would threaten France’s competitiveness.
Over the summer, rumours multiplied about large French corporate groups moving entire management teams out of the country.
The tax now will be less onerous, says Le Figaro online, noting that it had obtained information indicating the tax will only apply on salaries from work.
Revenue from capital — gains from share sales, real estate, dividends and interest — will be exonerated, the right-of-centre journal says, without citing sources.
That would mean that an entrepreneur selling a company would escape the famous 75 percent tax on gains realized from the sale.
Not everything has been finalised in the tax changes to be included in the Socialist government’s budget plan for 2013, Le Figaro says.
But according to its information, while the 75 percent levy will apply to singles who earn over a million euros, it will only be levied on household income above two million euros in the case of married couples or families with children.
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