French Constitutional Council Overturns 75% Tax on Ultrarich

France's Constitutional Council overturned a 75% tax rate on incomes above EUR 1 M on Saturday.

The 75% tax rate on incomes above EUR 1 M was included in the government's 2013 budget, approved by parliament in September, according to reports of the BBC News.

France's highest constitutional authority  announced it was overturning the Socialist government's flagship 75% income tax rate for high earners because it was "excessive" and represented a "breach of equality of taxes."

The French constitutional panel said in a statement that the way the upper tax rate was set to be imposed was unfair in the way it would affect different households.

The new tax rate, which was to take effect in 2013, was expected to affect some 1500 people and to raise around EUR 300 M a year.

Critics of the tax hike for high earners cautioned that it would drive away the country's wealthiest citizens.

Earlier in December, French actor Gerard Depardieu declared that he was moving to Belgium to seek tax exile status.