Market Watch

France to Tax Companies 75% on $1.3M Salaries

When direct taxation on individuals do not work, simply apply a tax to the corporations. If not anything else, we will control incentive on free enterprise….

French President Francois Hollande may have finally found a way to tax the really rich: by making their companies pay.

In a televised interview Thursday night, he said he wants companies that pay their employees more than 1 million euros ($1.3 million) to pay 75 percent payroll taxes on those salaries.

The proposed tax, which still needs to be approved by parliament, replaces one of Hollande’s signature campaign proposals: to tax individuals who earns more than 1 million euros at 75 percent. France’s highest court has thrown out that plan and the government has been looking for a replacement.

“What’s my idea? It’s not to punish,” Hollande said. “When so much is asked of employees, can those who are the highest-paid not make this effort for two years?”