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French Assembly Rejects Zucman Wealth Tax as Budget Standoff Deepens

The defeat heightens Socialist censure threats, forcing fresh talks on the 2026 budget.

Overview

  • Lawmakers voted 228–172 to defeat a 2% minimum levy on fortunes above €100 million, then rejected a Socialist 'light' version 228–171.
  • Rassemblement National, the centrist bloc and Les Républicains formed the majority against the tax after ministers warned of constitutional risks and damage to investment.
  • Even as the wealth‑tax plans failed, MPs had already backed other revenues, including a surtax on big multinationals and a higher CSG rate on capital income.
  • Prime Minister Sébastien Lecornu attended the debate and signaled support for dropping the 2026 freezes on pensions and minimum social benefits to help secure votes.
  • Negotiations continue with the PS keeping a censure option open, and the budget timetable is sliding toward a later receipts vote expected in mid‑November.