French Budget 2025 Introduces New Taxes Targeting Wealthy Households

The Barnier government's fiscal plan aims to address public finance deficits by increasing taxes on high-income earners while sparking debate over its broader economic impact.

• The 2025 budget proposal includes a new tax targeting households with significant dividend and investment income, affecting approximately 24,300 families.
• Individuals with taxable income above certain thresholds will face a minimum tax rate of 20%, impacting business owners, professionals, and retirees with lower effective tax rates.
• The government plans to raise 2 billion euros from high-income earners, while the overall fiscal effort is projected to impact middle and lower-income households more significantly, raising concerns about fairness.
• Additional fiscal measures include increased taxes on electricity, gas installations, and vehicle purchases, as well as changes to property tax benefits for Airbnb rentals.
• The budget has faced criticism from across the political spectrum, with concerns about its impact on economic competitiveness and the distribution of fiscal burdens.

3 Articles

Le Point Le Nouvel Obs Le Figaro