France Moves to Tax the Super-Rich – Introduction
French lawmakers have thrown their weight behind a new 2% wealth tax targeting the country’s ultra-rich.
The bill, backed by 116 votes to 39, was championed by the Ecologist Party and supported by left-wing MPs in a late-night session on Thursday.
While the vote marks a significant moment in France’s ongoing debate about wealth and taxation, it’s unlikely to clear the next legislative hurdle which is the Senate.
Meanwhile, lawmakers from the far-right National Rally party chose to sit this one out, abstaining from the vote, and the government’s centrist bloc was notably absent.
The “Zucman Tax”
Named after economist Gabriel Zucman, the proposed levy is aimed at France’s wealthiest 0.01% – about 4,000 individuals with assets exceeding €100 million.
If enacted, supporters estimate it could generate between €15 billion and €25 billion annually.
But it’s not just another blanket tax. The bill specifically targets those who, thanks to tax structuring, currently contribute less than what supporters believe is their ‘fair share’.
For example, trusts, holding companies, and other tax-minimisation tools would come under the microscope, with the goal of ensuring the ultra-wealthy pay at least a minimum effective tax rate.
Proponents argue that right now, the richest in France are, percentage-wise, paying less tax than the average citizen – and the bill would plug those holes in the financial dam.
A Battle of Ethics and Economics
For its supporters, the proposal is a matter of fairness. “Tax immunity for billionaires is over,” declared Éva Sas, an Ecologist MP, following the vote.
But the government isn’t convinced. Amélie de Montchalin, Budget Minister, dismissed the idea as “confiscatory and ineffective,” arguing that rather than boosting the economy, it could do the opposite.
“If we want investment, entrepreneurship, and corporate growth – the very things that create jobs and wealth – then we can’t afford to push capital away,” Montchalin told TF1 on Friday.
Instead, she hinted that the government is working on a different strategy to tackle tax optimisation.
Macron’s Tightrope Walk on Wealth and Business
President Emmanuel Macron has spent his tenure walking a fine line between pro-business policies and addressing public discontent over inequality.
Since taking office in 2017, he has cut corporate tax rates, reformed labour laws, and – perhaps most controversially—scrapped France’s old wealth tax (the ISF).
In its place, he introduced the IFI, a narrower tax that applies only to real estate, not broader investments.
The idea was to encourage high-net-worth individuals to invest in the economy, rather than seek tax havens or relocate abroad. But did it work?
A government review in 2023 found that the reform didn’t significantly shift investment away from real estate, raising questions about whether it achieved its intended goals.
Meanwhile, France remains home to some of the world’s wealthiest individuals, including LVMH CEO Bernard Arnault, whose fortune hovers around €186 billion ($195 billion).
France Moves to Tax the Super-Rich – Conclusion
While the National Assembly vote sends a strong political signal, the bill is unlikely to pass into law without Senate approval.
However, even if it fails, though, the conversation isn’t going away.
With inequality, tax fairness, and wealth redistribution taking centre stage globally, France’s approach to taxing the super-rich is bound to remain a hot topic.
Final thoughts
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