hollywoodtone.blogspot.com French corporations now to pay 75% tax on large salaries
hollywoodtone.blogspot.com French corporations now to pay 75% tax on large salaries
France's Constitutional Council approved a law requiring companies to pay 75% in taxes on annual salaries exceeding 1 million euros ($1.47 million). It is a move by President Francois Eolande's to limit executive salaries in tough economic times.
There is high unemployment in France and many workers have had salaries reduced in an effort to keep companies and the government competitive. President Hollande has asked corporations in the country to do their part and this law is a step in that direction. He is on record as saying the law is "not to punish" but to contribute to the economy and help France move forward. The president says that his government intends to provide more jobs for France. France: tough times for workers Other efforts that will cost some companies is the doubling of a surtax on companies that do an annual turnover of more than 250 million euros, expected to bring the government some 2.5 billion euros each year. Many companies, including football clubs in France, have complained loudly about the changes. The tax to be levied on companies with high-earning employees is a 50 percent levy on the portion of the wages which are above 1 million euros, in the years 2013 and 2014. Hollande had tried a tax on those earning over 1 million euros annually, paying extra taxes salary they earned past that 1 million euro mark. However, the courts rules such a move would be unconstitutional.
hollywoodtone.blogspot.com French corporations now to pay 75% tax on large salaries