France’s Constitutional Council upheld President Francois Hollande’s “millionaires’ tax” on Sunday, ruling in favor of a 75-percent tax to be paid by companies with incomes above $1 million euros ($1.38 million) in 2013 and 2014.
Companies will now be taxed 50 percent on salaries exceeding $1 million euros, and combined with other taxes and social contributions, will effectively total 75 percent of wages, France 24 reports. The tax will be capped at 5 percent of the company’s revenue.
The record-high tax was part of Hollande’s campaign to transform France into a more middle class state by using the wealthy to help the struggling economy. The Socialist government initially intended on placing the 75 percent tax on individuals, but the high council struck down the proposal in December 2012, ruling that 66 percent was the legal maximum.