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French Committee Rejects Zucman Wealth Tax as Budget Battle Quickens

A plenary debate opens Friday on the government's original draft.

Overview

  • France’s Finance Committee began the 2026 budget review on October 20, working through roughly 1,500 amendments under a 70‑day deadline.
  • The committee voted down the left‑backed “Zucman tax” — a 2% minimum levy on net wealth of at least €100 million — with the measure set to return in the full Assembly.
  • Provisional rewrites include extending the high‑income minimum tax until the deficit falls below 3% of GDP, indexing only the first income‑tax bracket, scrapping a financial tax on holdings in favor of taxing them at death, and defiscalising child support, with an ‘exit tax’ also reinstated.
  • The government has ruled out using article 49.3, placing the outcome in Parliament’s hands, and Prime Minister Sébastien Lecornu will attend the plenary debate after coalition leaders met at Matignon.
  • S&P’s one‑notch downgrade has increased pressure as the government seeks about €14 billion in new revenues and €17 billion in savings for 2026, with a revenue vote slated for November 4 and fallback by ordinance possible if deadlines slip.