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French Lawmakers Reject Zucman Wealth Tax, Raising Stakes in Budget Talks

The vote leaves the government under pressure to propose other revenue tools, with Socialists keeping the censure option open.

Overview

  • Deputies voted down the left’s 2% minimum tax on fortunes above €100 million by 228 to 172, then rejected the PS’s lighter version by 228 to 171.
  • The PS compromise sought a 3% floor from €10 million while exempting innovative startups and family businesses, which the party estimated could raise €5–7 billion annually.
  • The government argued both texts risked taxing professional assets and would likely be struck down by the Constitutional Council, citing an adverse opinion read in the chamber.
  • Prime Minister Sébastien Lecornu attended the debate, dismissed the idea of a high-yield wealth levy that would pass constitutional review, and backed lifting planned freezes on pensions and minimum social benefits in 2026.
  • Socialists demanded alternative measures such as changes to the Dutreil regime or a return of the wealth tax, negotiations continue across groups, and the broader budget work proceeds after the right also pared back a holdings measure.