French income tax soars above 100pc as Hollande policy bites

 
City A.M. Reporter
More than 8,000 French households’ tax bills topped 100 per cent of their income last year, the business newspaper Les Echos reported this weekend, citing Finance Ministry data.

The exceptionally high level of taxation was due to a one-off levy last year on 2011 incomes for households with assets of more than €1.3m (£1.01m).

President Francois Hollande’s socialist government imposed the tax surcharge last year, shortly after taking office, to offset the impact of a rebate scheme created by its conservative predecessor to cap an individual’s overall taxation at 50 per cent of income.

Les Echos reported that nearly 12,000 households paid taxes last year worth more than 75 per cent of their 2011 revenues due to the exceptional levy.