French Parliament Rejects Proposed Wealth Tax on Super-Rich

The French Parliament has rejected multiple proposals to impose a new wealth tax on the country’s richest individuals, dealing a blow to left-wing efforts to address widening inequality and reigniting a fierce national debate over France’s fiscal direction.

The proposals, voted down late Friday, were inspired by the French economist Gabriel Zucman, who had called for a 2% annual levy on assets exceeding €100 million. The measure was championed by the Socialist Party, which argued that such a tax would ensure “fair contribution” from billionaires and fund social spending amid rising public deficits.

A Clash of Ideologies

Over recent months, the idea of a new wealth tax has polarized France’s political and business circles. Socialist lawmakers framed it as a necessary correction to years of policies favoring capital, while business leaders and tech entrepreneurs condemned the proposal as “economic madness” and a “neo-communist move” that would deter investment and drive innovation abroad.

The heated debate, often dubbed the “tax of communism” by critics, has underscored the growing tension between France’s left-wing opposition and pro-business centrists within the government of Prime Minister Sébastien Lecornu, whose fragile parliamentary majority faces constant pressure.

The rejection came during negotiations over the 2026 national budget, which the government has struggled to push through amid deep divisions within the National Assembly. The Socialist Party had introduced an amendment to include a narrower version of the wealth tax in the budget bill, a proposal long at the heart of its economic platform.

However, with both conservative and centrist lawmakers opposed, the motion failed to gain traction, postponing any potential compromise and raising the risk of further political instability. Analysts warn that if the government fails to secure enough support for its broader fiscal plan, it could face another confidence crisis in the coming weeks.

France has long wrestled with the politics of taxing wealth. A previous “solidarity tax on wealth” (ISF) was abolished in 2018 under President Emmanuel Macron, who replaced it with a narrower real-estate tax to attract investment and stem capital flight.

Since then, opponents have argued that the move disproportionately benefited the wealthy, while supporters say it helped restore business confidence and attract high-net-worth individuals back to France.

Economist Gabriel Zucman, known globally for his research on tax havens and inequality, has recently renewed calls for coordinated global wealth taxation, a proposal echoed by international institutions like the OECD and IMF but largely resisted by major economies.