- Prison Planet.com - https://www.prisonplanet.com -

French govt backs 75% tax rate, scraps exec pay cap

France 24 [1]
May 24, 2013

Businesses rather than employees will foot the bill for a new 75 percent tax on salaries over €1 million, French Finance Minister Pierre Moscovici said in an interview with Les Echos on Thursday, while a plan to cap directors’ pay has been dropped.

French businesses will face a 75 percent tax on employees’ salaries above €1 million a year under new legislation set to be introduced by the country’s government in 2014.

However, the government will stop short of introducing a cap on executive pay in the private sector, France’s Finance Minister Pierre Moscovici revealed in an interview with French daily Les Echos published on Thursday.

Moscovici said that the new tax will be submitted before the country’s parliament as part of next year’s budget and will stay in place for a period limited to two years.

“After several months of consultation, I decided to focus legislative action on the contribution of 75 percent tax on wages exceeding €1 million, to be paid by the employer,” the finance minister told Les Echos.

Full story here. [1]