Famous French 75 pct tax? Hollande says companies will bear the burden on salaries over $1.3M

President Francois Hollande says that companies that pay their employees more than 1 million euros ($1.3 million) will see their tax bill on those salaries rise to 75 percent.

The new payroll tax — which would last only for two years — is meant to replace a proposal to tax individuals whose income was above 1 million euros that was struck down by the country's highest court.

On the highest salaries, companies already pay payroll taxes that add up to at least 50 percent of the paycheck.

In a televised interview Thursday, Hollande said he hopes most companies would, in fact, avoid the tax by reducing executive pay for two years. He said the measure was natural at a time when many employees are being asked to take pay cuts.