France Still Plans to Renew 75% Income Tax Rate, Moscovici Says

France is planning a proposal for a 75 percent income-tax rate on the wealthiest after a court stuck down the previous one, Finance Minister Pierre Moscovici said.

“People have to realize that those who earn a lot of money, when the situation is exceptional, they can make an exceptional effort,” Moscovici said in an interview today at the World Economic Forum in Davos. “It’s not for their whole life, but for two years.”

The marginal tax rate on annual earnings of more than 1 million euros ($1.4 million), one of President Francois Hollande’s campaign promises, had become a focal point of discontent and prompted some tax exiles.

France’s top court declared the original plan unconstitutional because it failed to guarantee taxpayer equality. Europe 1 radio reported earlier this week that the government was preparing to drop the tax completely.

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