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French National Assembly Rejects 'Zucman' Wealth Tax, Deepening Budget Standoff

The defeat sharpens PS censure threats, pushing the government to seek alternative ways to tax top fortunes.

Overview

  • Lawmakers voted 228–172 to reject the left’s 2% minimum levy on fortunes of €100 million or more, inspired by economist Gabriel Zucman.
  • A PS fallback—3% from €10 million excluding innovative start-ups and family businesses—also failed, 228–171.
  • Rassemblement National, the centrist bloc and Les Républicains combined to block the measures, despite united backing from left-wing groups.
  • Ministers warned the proposals risk constitutional invalidation because they include professional assets, and Prime Minister Sébastien Lecornu said there is no high‑yield tax that would pass review.
  • Following the vote, the PS maintained censure threats as Lecornu moved to negotiate next steps, signaling support for unfreezing pensions and minimum social benefits in 2026.