French National Assembly Rejects Zucman Tax Amid Political Turmoil
France's National Assembly rejects the Zucman tax on ultra-wealthy assets amid political tensions and promises to adjust social benefits to appease allies.
- • The National Assembly rejected the Zucman tax proposing a 2% minimum on assets over €100 million.
- • The Socialist Party's 3% tax proposal on assets above €10 million was also dismissed.
- • Prime Minister Sébastien Lecornu’s minority government depends on Socialist support and plans to lift freezes on pensions and welfare benefits.
- • Budget Minister Amélie de Montchalin warned of constitutional challenges to wealth taxes, emphasizing economic stability.
Key details
On October 31, 2025, the French National Assembly decisively voted against left-wing proposals for a new wealth tax on the ultra-rich, specifically rejecting the so-called Zucman tax which would have imposed a minimum 2% levy on holdings exceeding €100 million. This measure, championed by economist Gabriel Zucman, targeted roughly 1,800 ultra-wealthy households and was projected to raise between €15 billion and €20 billion annually. Despite significant public support viewing the tax as a fair contribution from the ultra-wealthy, the proposal was blocked by a majority including the centrist bloc, conservative Les Républicains, and the far-right Rassemblement National (RN) (124557, 124425, 124334).
Accompanying the Zucman tax rejection, a Socialist Party initiative to impose a 3% tax on assets over €10 million, excluding certain businesses, was also turned down. Instead, the government of Prime Minister Sébastien Lecornu, operating as a minority reliant on Socialist backing, passed a more modest 2% tax on personal holdings in non-operational holding companies, expected to generate around €1 billion (124557).
The debate underscored political tensions: left-wing lawmakers and France Insoumise criticized the government's refusal as ignoring public demands for greater fiscal justice, with François Ruffin calling the tax a reasonable measure and Eric Coquerel denouncing opposition claims of radicalism. Budget Minister Amélie de Montchalin countered by warning that the Constitutional Council would not approve such extensive wealth taxes, emphasizing economic stability needs alongside fairness (124334).
The rejection fueled frustration on the left, especially since the Socialist Party had made the tax a condition to avoid censure motions against Lecornu's fragile government. Following the voting, Lecornu promised to appease left-wing allies by planning to lift a freeze on pensions and welfare benefits in the upcoming budget (124557).
In a wider context of political discord, the Assembly also witnessed the passing of a €26 billion tax on multinationals supported by both the left and the far-right RN, highlighting the complex alliances shaping fiscal policies. Meanwhile, public opinion appears at odds with parliamentary decisions, reflecting ongoing debates over taxation fairness and government stability in France's turbulent political landscape (124377, 124443).