This article gives an overview of Sarkozy's tax package introduced in August 2007 - the law in favour of labour, employment and purchasing power (loi en faveur du travail, de l'emploi et du pouvoir d'achat). The article discusses the major provisions of the tax package, including the tax exemption for overtime income, the mortgage interest tax credit, reform of the direct tax cap, and the substantial cuts in taxes on capital. The article also analyses the decision of France's Constitutional Court (Conseil Constitutionnel) which upheld the direct tax cap, but struck down another provision of the tax package on grounds that it breached the principle of equality.