France scales back plans to raise taxes on ultra-rich

French President Francois Hollande attends a ceremony for diplomats at the Elysee Palace in Paris Jan. 11, 2013. / AFP/Getty Images

PARIS The French government's plan to raise taxes on the wealthy is being radically scaled back after a second legal opinion said the proposed marginal rate of 75 percent was unfair.

France's highest court had already thrown out the 75-percent rate, and a high-level advisory council agreed. The Socialist government on Friday said that under the decision, the rate on those with incomes above 1 million euros ($1.3 million) could not exceed 60 percent.

French President Francois Hollande campaigned on a promise to impose the tax, despite criticism that it would do little to solve growing fiscal problems and would drive away the wealthiest citizens. The current top tax rate is 45 percent.

The government says it will introduce a new measure in response to the decision.

[molsondog]

It's "FAIR" they say. I am so sick and tired of "FAIR" !!! What's fair is that I get to keep what I earn and you get to keep what you earn. There ... that is FAIR. Sorry that you envy me. Sorry that you don't have the education I have. Sorry that you can't do the job I do and know what I know. When you get to the point you are able to earn more, I am SURE you will very much think it is un-fair to have to give it away.

[Louis_Chez]

What a screwed up country.

Who the hell is going to work for $.65 on the dollar, let alone $.25.

These Socialists are morons!

[nonpolitico]

LOUIS CHEZ: They are French Socialist morons!
They are in the EU, which is eerily similar to the USSR.
They have the Euro, which is close to collapse because it is a political unit, not a monetary one.
There is no democratic accountability.
The EU has not had its accounts AUDITED for over 10 years.
The EU Commission is not elected but is bureaucrats.
The whole set up is Socialist Dream...(Nightmare if you are a citizen)
Apart from that, France/ Europe is a great place!!!!!