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French Finance Committee Rewrites 2026 Budget, Rejects Zucman Wealth Tax

The minority Lecornu government heads into a fraught floor debate under tight deadlines as it pursues deficit cuts and prepares a November amendment to suspend the pensions reform.

Overview

  • The Assembly’s finance committee voted down the so‑called Zucman proposal for a 2% minimum levy on fortunes above €100 million, with the government camp and the National Rally opposing it.
  • Deputies extended and reinforced the 20% minimum contribution on high incomes until the deficit falls below 3% of GDP, and approved partial indexation of only the first income‑tax bracket.
  • The committee scrapped the government’s tax on financial holdings in favor of a levy at the owner’s death, though several members expect this to be revisited in the full chamber.
  • Members backed restoring an exit tax and rejected the plan to replace retirees’ 10% income‑tax abatement with a flat €2,000 allowance.
  • Roughly 1,400 amendments frame a compressed timetable: the full Assembly debate starts Friday, the separate Social Security budget opens in committee this week with major health and pension savings contested, and Matignon plans a November move to suspend the pensions reform under market scrutiny after an S&P downgrade.