Hollande’s controversial 75% tax rate approved

France President Francois Hollande's controversial 75% tax rate on high earners has been approved by the country's top court, a decision that is set to infuriate employers across the troubled country.

One of Hollande's signature socialist policies, the measure seeks to make employers liable for the 75% tax on salaries exceeding €1 million.

Polls suggest that a large majority in France back the temporary tax as the country seeks to offset its huge public deficit by implementing high tax cuts.

Initially, the proposal to tax individual incomes was rules unconstitutional by the Constitutional Council a year ago. 

But Hollande's government has modified it to make employers liable for the 75% tax on salaries exceeding one million. The levy will last two years, affecting income earned this year and in 2014.

In protest to the measure, football clubs in France went on strike earlier this year over the issue, citing the precarious financial situation of many clubs.

There was a chorus from the clubs who argued that the move would deter top players from moving to the country. Moreover, the majority of the clubs lambasted the measure, as it does not qualify fellow football club Monaco FC, whose players reside in the tax-free haven.

Moreover, businesses and wealthy individuals also condemned the tam including film star Gerard Depardieu, who left the country in protest

As opposed to many European countries, France has opted to increase its tax rates to offset its deficit rates.