Deputies reject wealth tax proposals

On Friday, October 16, deputies from the right and far-right in France rejected several amendments aimed at reintroducing a wealth tax or implementing a Zucman tax on very high fortunes. The vote took place during a public session reviewing the 2027 budget.

Rejection of the ISF return

Deputies voted against amendment number 1079, proposed by the LFI group, which sought to restore the solidarity wealth tax (ISF) in its pre-2018 version. This tax, which was transformed into the real estate wealth tax (IFI), could have generated about 3.5 billion euros for public finances. The amendment was opposed by multiple right-wing factions, including the National Rally and various conservative groups.

Decline of the real estate wealth tax

The real estate wealth tax (IFI), introduced in 2018, affects far fewer households than the previous ISF. In 2017, the last year of the ISF, 358,000 households paid the tax, generating 4.2 billion euros. In contrast, the IFI in 2025 affects 193,600 households and brings in 2.3 billion euros.

Zucman tax also rejected

The National Assembly also rejected the Zucman tax, a 2% tax on fortunes exceeding 100 million euros, which could have generated 20 billion euros annually. The vote was 70 to 35, with right-wing deputies opposing the measure and left-wing groups supporting it.

Billionaire exile as a justification

Deputy Jean-Philippe Tanguy of the National Rally argued that reintroducing such taxes could lead to the exile of French billionaires. He warned that billionaires would leave the country, leaving the government with no revenue. This argument is frequently used by the right and far-right to oppose higher taxes on the wealthy.

Norway's example contradicts claims

Despite these concerns, evidence from Norway suggests that taxing the ultra-rich does not lead to significant capital flight. The country’s experience shows that the revenue generated from such taxes largely offsets any potential loss. This challenges the argument used by French right-wing politicians.

Next steps for the 2027 budget

The National Assembly is scheduled to vote on the "revenue" section of the 2027 budget on November 3. The text is expected to reach the Senate by November 17 at the latest. If the budget ends with a 49.3 rating, as in previous years, the government will have sole authority to decide which measures to retain.