France strikes down tax hikes for rich

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PARIS, Dec. 29 (UPI) -- France's Constitutional Council shot down President Francois Hollande's proposed 75 percent income tax rate for citizens making more than $1.3 million annually.

In its ruling Saturday, the council said Hollande's policy "failed to recognize equality before public burdens" because, unlike other forms of income tax, the new tax rate would be to be applied to individual citizens instead of households, the BBC reported.

The new tax rates, which would affect about 1,500 people, angered France's business community and prompted a number of wealthy citizens to emigrate.

Hollande's government said it would rework its proposal to address the concerns of the council, but will press on with the legislation.

"The government will propose a new system that conforms with the principles laid down by the decision of the Constitutional Council," said Prime Minister Jean-Marc Ayrault.