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French President Francois Hollande says he still plans to raise the top rate of income tax after his 75% plan was struck down on technical grounds.

In a national address on New Year’s Eve, Francois Hollande said the law would be redesigned, adding, “we will still ask more of those who have the most”.

However, the president did not mention the 75% figure, leading some to speculate that the move would be watered down.

Francois Hollande also promised “all efforts” towards cutting unemployment.

The number of jobless broke the three-million barrier for the first time this year, prompting Francois Hollande to say the trend must be reversed.

He has been criticized for lacking direction, and his popularity levels have plummeted, since he took power in May.

Francois Hollande says he still plans to raise the top rate of income tax after his 75 percent plan was struck down on technical grounds

Francois Hollande says he still plans to raise the top rate of income tax after his 75 percent plan was struck down on technical grounds

Francois Hollande acknowledged the “serious and legitimate” concerns of the public, and that there had been “fits and starts” in his first six months.

But the president insisted France would emerge from the financial crisis “sooner and stronger” than expected because of action by his government.

“We’ve set the course – jobs, competitiveness and growth – and I will not deviate. It’s the future of France,” he said.

The Socialist president said he would resubmit his flagship policy of raising income tax for those earning more than 1 million euros ($1.3 million) a year.

It was rejected by the Constitutional Council on Saturday because, unlike other forms of income tax, it was to be applied to individuals rather than households.

Francois Hollande said while the law would be “redesigned” its objective would remain the same – that those who could afford to do so should pay more to France’s effort to tackle its deficit.

The policy has angered France’s business leaders and the right-wing opposition, who say it discourages entrepreneurship and wealth-creation. It has led to some wealthy citizens, like the actor Gerard Depardieu, to say they would emigrate.

While the measure is popular with Francois Hollande’s supporters on the left, some analysts think it may be dropped or watered down, possibly by raising the income level at which it is paid.

“I suspect this tax will be shelved,” Philippe Gudin, an economist for Barclays and a former French treasury official, told Reuters news agency.

“For the [low amount of] revenue it would raise, the outcry it has provoked and the damage it has done to France’s image, it would be more sensible if it were quietly buried.”

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France’s constitutional council has struck down a top income tax rate of 75% introduced by Socialist President Francois Hollande.

Raising taxes for those earning more than 1 million euros has been a flagship policy for Francois Hollande.

The policy angered France’s business community and prompted some wealthy citizens to say they would emigrate.

Francois Hollande’s government said it would rework the tax, due to take effect in 2013, to meet the council’s complaints.

In its ruling on Saturday, the Constitutional Council said the new tax rate “failed to recognize equality before public burdens” because, unlike other forms of income tax, it was to be applied to individuals rather than households.

For example, that meant a household in which one person earned more than 1 million euros would pay the tax, but a household in which two people earned 900,000 euros each would not have to pay.

France's constitutional council has struck down a top income tax rate of 75 percent introduced by Socialist President Francois Hollande

France’s constitutional council has struck down a top income tax rate of 75 percent introduced by Socialist President Francois Hollande

The council also rejected new methods for calculating the tax.

But Prime Minister Jean-Marc Ayrault said the government would press ahead with the new tax rate.

“The government will propose a new system that conforms with the principles laid down by the decision of the Constitutional Council,” he said.

The new rate was seen as largely symbolic since it would have only applied to some 1,500 people for a temporary period of two years.

But along with other tax rises, it has still been the subject of fierce debate in France.

French actor Gerard Depardieu recently announced he was moving to Belgium to avoid taxes, sparking a furious reaction from some on the left.

There was also speculation that people employed in high-income jobs like banking and finance would move elsewhere, including to London.

Francoise Hollande campaigned against the austerity policies used in many European countries affected by economic crisis, favoring higher taxes rather than spending cuts to bring down the deficit.

The 75% rate for high earners was included in the government’s 2013 budget, approved by parliament in September.