Debate Intensifies Over 'Zucman Tax' in 2026 French Budget Amid Senate Pension Reform Warning

The French National Assembly continues to wrestle with the revenue section of the 2026 budget, centering on the contentious 'Zucman tax' targeting ultra-high wealth. The left supports this wealth tax, while the right and centrist factions resist it. Economist Gabriel Zucman, director of the European Tax Observatory, criticized the socialist government's past wealth tax failures, emphasizing the mistakes made by allowing significant exemptions that undermined fiscal justice.

Zucman responded to the Socialist Party's "Zucman light" proposal—a minimum 3% tax on fortunes over €10 million, lower than his suggested 2% tax starting at €100 million but excluding innovative and family businesses. He warned against introducing tax breaks for the ultra-rich, stating such exemptions fuel tax optimization and stressed the importance of their fair fiscal contribution, especially as public debt approaches 120% of GDP, levels unseen since major historical conflicts.

Meanwhile, Gérard Larcher, President of the Senate, voiced concerns about the political direction surrounding the budget, stating that the Senate would reinstate pension reforms. He criticized Prime Minister Sébastien Lecornu for aligning too closely with socialist positions, complicating budget approval in the Senate and signaling heightened fiscal and political tensions.

Together, these developments highlight a polarized debate over the 2026 budget's approach to wealth taxation and social reform, underscoring the challenges France faces in achieving fiscal stability and social equity in the years ahead.