France's National Assembly has rejected proposals for taxing the ultra-wealthy, leaving Prime Minister Sébastien Lecornu's minority government facing a major crisis. The vote comes as lawmakers are debating Lecornu's 2026 budget, which aims to address France's growing deficit.
Two left-wing proposals were put forward: one by French economist Gabriel Zucman, calling for a minimum 2% tax on wealth over €100 million, and another by the centre-left Socialist Party, proposing a 3% levy on assets worth more than €10 million. However, it was Zucman's plan that generated significant support in public polls, suggesting that his target of raising up to €15-20 billion annually could be achievable.
Prime Minister Lecornu opted for a different approach, proposing a 2% levy on assets in holding companies not used for business purposes. This measure is expected to raise up to €1 billion by targeting the personal assets in around 4,000 holding companies that serve no economic purpose other than to reduce an individual's tax bill.
The proposed taxes were seen as a way to address "tax justice" and ensure that the ultra-wealthy contribute proportionally to the system. However, the government faces significant challenges in passing this legislation, with the opposition from the right and concerns about its potential impact on economic growth.
Lecornu's fragile minority government relies heavily on support from Socialist Party lawmakers to pass his budget and survive no-confidence votes. The failure of these proposals is a major blow to Lecornu's efforts to secure this support and implement his policies.
The vote marks a significant setback for France's efforts to address income inequality and reform its tax system. As the government faces further challenges in the coming months, including upcoming presidential elections and budget debates, it remains to be seen whether these proposals will receive another chance at life.
Two left-wing proposals were put forward: one by French economist Gabriel Zucman, calling for a minimum 2% tax on wealth over €100 million, and another by the centre-left Socialist Party, proposing a 3% levy on assets worth more than €10 million. However, it was Zucman's plan that generated significant support in public polls, suggesting that his target of raising up to €15-20 billion annually could be achievable.
Prime Minister Lecornu opted for a different approach, proposing a 2% levy on assets in holding companies not used for business purposes. This measure is expected to raise up to €1 billion by targeting the personal assets in around 4,000 holding companies that serve no economic purpose other than to reduce an individual's tax bill.
The proposed taxes were seen as a way to address "tax justice" and ensure that the ultra-wealthy contribute proportionally to the system. However, the government faces significant challenges in passing this legislation, with the opposition from the right and concerns about its potential impact on economic growth.
Lecornu's fragile minority government relies heavily on support from Socialist Party lawmakers to pass his budget and survive no-confidence votes. The failure of these proposals is a major blow to Lecornu's efforts to secure this support and implement his policies.
The vote marks a significant setback for France's efforts to address income inequality and reform its tax system. As the government faces further challenges in the coming months, including upcoming presidential elections and budget debates, it remains to be seen whether these proposals will receive another chance at life.
. I mean, come on, €1 billion is a small fraction of what the ultra-wealthy are raking in each year. It's like they're playing a game of economic whack-a-mole – every time you fix one hole, another one opens up. And let's be real, it's not like this is going to make a dent in the growing deficit 
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... I mean, what's next? Rich people hiding their cash in holding companies like they're playing some kind of super-sophisticated hide-and-seek game? It's like they think the system is rigged against them or something. Newsflash: it's not a conspiracy, it's just math 
... if they can't get this tax thing right, how are they gonna pass their budget and stay afloat? It's like they're trying to solve a puzzle blindfolded while being attacked by a swarm of bees 
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... it's just politics as usual. But still, you'd think the left would be able to get some decent legislation through without so much resistance 
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... or if they're just counting on their money and influence to keep them afloat 
. It's like they think the rules of society don't apply to them or something 
. Anyway, this is just one more piece in the never-ending puzzle that is French politics 
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. In the meantime, I think we need some real action on income inequality 
. France deserves better than just a bunch of fancy talk about "tax justice" 
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. The whole thing feels like a classic case of "they're in it for themselves" and not really caring about the people's well-being 
! Those numbers add up quickly, but at least it's better than nothing, right? 
. He needs that Socialist Party support more than ever. It's like, they're trying to pass the buck and leave this whole 'tax justice' thing to future governments 
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. Do we want to be a country where the few have all the power and the many struggle? Or can we find a way to make it more equal? I think it's time for us to rethink what equality means, because right now, it seems like a myth 
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. Until then, I'll just be over here, thinking about it... 
The real question is, who's behind all this, manipulating the system from the shadows? 
It's all about fairness and making sure everyone contributes to the system. The fact that they couldn't get it done says a lot about the politics in France, though. I'm not going to lie, I thought Zucman's plan was solid 
IT'S LIKE THE GOVT IS JUST GIVING AWAY ALL THEIR WEALTH TO THE RICH PEOPLE!!! 
AND NOW THEY'RE SAYING ITS NOT FAIR?!? 
BUT SERIOUSLY, WHO NEEDS A MINIMUM 2% TAX ON WEALTH OVER €100 MILLION?!? THAT'S LIKE GIVING THEM A FREE PASS TO KEEP THEIR MONEY!!! 
. The fact that the Socialist Party wasn't able to muster enough support for Gabriel Zucman's proposals is pretty telling - it shows how out of touch some politicians are with the people who need help the most 
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. It's so unfair to the rest of us who have to work hard to make ends meet 
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and seriously who even uses holding companies to avoid taxes 
! Lecornu needs to think outside the box and come up with some creative solutions to raise that money. The 2% levy on holding companies is just not enough, imo 
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