France done with high tax on the rich, wants reforms

AP News
|
Posted: Jan 07, 2015 5:30 AM
France done with high tax on the rich, wants reforms

LAS VEGAS (AP) — France's economy minister says his country's tax regime is becoming internationally competitive, notably now that it has dropped a 75-percent tax on high earners.

Socialist Emmanuel Macron said France, whose high taxes and regulations have stifled innovation and economic growth, is now "a haven for entrepreneurs." He spoke Tuesday in an interview with The Associated Press at the Consumer Electronics Show in Las Vegas.

He said France has reformed capital gains taxes, and acknowledged that a 75-percent tax on income earned above 1 million euros ($1.22 million) had sent a bad signal to investors. He said the tax, dropped last month, "is over now, and finished."

France's government also launched a plan to cut payroll taxes by up to 40 billion euros ($49 billion) by 2017, hoping to boost hiring.