The French Parliament today passed President Francois Hollande’s 2013 budget law, imposing a 75 percent tax on income of more than 1 million euros ($1.33 million) and forcing a 10 billion-euro cut in public spending.
Hollande’s 2013 blueprint relies on 20 billion euros in tax increases and new income tax brackets for high earners. The moves are aimed at bringing the budget deficit to 3 percent of gross domestic product next year from a projected 4.5 percent this year. The budget predicts growth of 0.8 percent.
Hollande’s Socialist Party has an absolute majority in the lower chamber, paving the way for the law’s passage even after his Green and Communist allies in the upper house rejected his budgetary plan, calling it too austere.
The Parliament also passed today the president’s five-year budget target that includes a 0.3 percent deficit in 2017, when his mandate will end.