French Parliament Grapples with Zucman Tax and Inheritance Reform Amid Budget Debates

As the French Parliament reviews the 'revenue' section of the 2026 budget, intense negotiations unfold around key fiscal justice proposals, particularly the contentious Zucman tax and reforms to inheritance taxation.

Environment Minister Sébastien Lecornu is at the center of these deliberations, currently negotiating with the Socialist Party to avoid a motion of censure. Notably, Lecornu has renounced the use of the 49.3 procedure, which allows the government to pass legislation without a parliamentary vote, signaling a more collaborative approach. He also suspended the unpopular pension reform to address public discontent. Nonetheless, Lecornu faces persistent challenges from left-wing groups pushing for stronger fiscal justice measures, including a minimum tax on high wealth and enhanced taxation of large inheritances. These amendments, championed by the left, are viewed as crucial for the survival of the Lecornu government but face slim chances of success in parliament.

The Macron administration, advocating supply-side economic policies since 2017, remains opposed to the proposed Zucman tax. This tax, named after economist Gabriel Zucman, aims to increase taxation on the wealthiest, exacerbating ideological divides within French politics. Left-wing groups plan to present several amendments targeting large inheritances, framing them as pivotal for fiscal equity, despite limited media campaigns to rally broader support.

The debates underscore broader tensions between government resistance to increased taxation and left-wing demands for fiscal redistribution. As the budget discussions proceed, the outcome of these proposals could significantly influence France's fiscal landscape and political stability.

According to Liberation, Lecornu's decision to forego the 49.3 process and suspend pension reforms are strategic moves to navigate parliamentary opposition. Concurrently, the left's proposals on inheritance tax reforms highlight ongoing struggles for fiscal justice within France’s evolving budgetary framework.