Government and Socialists Clash Over Zucman Wealth Tax in 2026 Budget Debate

The French government is firmly opposing the proposed Zucman wealth tax put forward by the Socialist Party (PS) during the 2026 budget discussions. The PS advocates for a 2% tax on assets exceeding 100 million euros, aiming to target the country's wealthiest households. However, the government, represented by spokesperson Maud Brégeon, has made clear that any tax affecting professional assets, production, factories, or innovative startups will be rejected, signaling a significant rift between the administration and the socialists.

The debate, expected to intensify as the Assembly examines the wealthy taxation section of the budget, centers on whether professional wealth should be included in the tax base. According to recent reports, this issue has escalated into a political confrontation anticipated to culminate by the end of the week, with the Socialists threatening to pursue a censure motion if their demands are ignored.

This standoff highlights polarized views on balancing fiscal justice and economic competitiveness ahead of the 2026 budget approval. The government aims to protect economic innovation from what it sees as punitive taxation, while the Socialists push for tougher measures on the ultra-wealthy, placing the Zucman tax at the heart of ongoing political tensions in France.