French National Assembly Finance Committee Rejects Zucman Tax Proposal Ahead of Plenary Debate
The French National Assembly's Finance Committee has rejected the Zucman tax proposal targeting ultra-wealthy individuals, but the debate will continue in the full Assembly amid political divisions.
- • The Finance Committee rejected the Zucman tax targeting wealth over 100 million euros with a 2% minimum tax rate.
- • Leftist parties support the tax while government and National Rally oppose it.
- • The plenary Assembly will reconsider the measure starting from the government's proposed budget text.
- • Budget adoption faces constitutional deadlines, potentially requiring ordinances if missed.
Key details
The Finance Committee of the French National Assembly has rejected the so-called 'Zucman tax' as part of the 2026 budget discussion. This tax, named after economist Gabriel Zucman, would impose a minimum tax rate of 2% on individuals with assets exceeding 100 million euros, including professional holdings. Despite the committee's rejection, the proposal will be revisited in the Assembly plenary where deputies will deliberate starting from the government’s original budget text.
Support for the tax mainly comes from four leftist groups: La France Insoumise (LFI), the Socialist Party (PS), the Greens, and the Communist Party. Conversely, the government and the National Rally have expressed opposition towards the measure. Éric Coquerel, president of the Finance Committee, highlighted that the key debate will now take place in the upcoming plenary session.
The Assembly faces constitutional deadlines to adopt the budget — 70 days for the state budget and 50 days for social security — creating procedural pressure. Should these deadlines be missed, the budget could be enacted through government ordinances. This pivotal moment in the budget process underscores the political divisions surrounding wealth taxation in France and sets the stage for intense discussions in the weeks ahead.