La France insoumise's inheritance tax plan

Éric Coquerel, a French politician, outlined a proposal from his party, La France insoumise, to tax all inheritances over 12 million euros at 100%. He described this as a "question of republican principle" meant to stop the creation of a "noblesse d'argent," or a money-based aristocracy.

Previous mentions of the proposal

The idea of taxing inheritances above 12 million euros is not new. Jean-Luc Mélenchon, the party’s leader, mentioned it in 2022 during his presidential campaign, and Manuel Bompard referenced it in 2024 using the term "maximum inheritance." However, legal experts believe this proposal might face challenges from the Constitutional Council, France’s highest constitutional authority.

How inheritance taxes work in France

In France, inheritance taxes are calculated in brackets, similar to income tax. For direct descendants, each child receives a deduction of 100,000 euros per parent. The remaining amount is taxed in seven tiers, from 5% to 45%. The highest rate, 45%, applies to amounts exceeding 1,805,677 euros. La France insoumise's plan would introduce an eighth bracket, taxing all inheritances over 12 million euros at 100%.

Constitutional principles and tax limits

France’s Constitution requires that taxes be "equally distributed among all citizens, in proportion to their abilities," as stated in Article 13 of the Declaration of the Rights of Man and of the Citizen. In 2012, the Constitutional Council warned that taxes could be unconstitutional if they were "confiscatory" or placed an "excessive burden" on certain taxpayers. However, the Council has not set a strict limit on tax rates, instead evaluating each case based on the marginal tax rate, which includes all taxes affecting the same income.

Past constitutional challenges

In 2012, the Constitutional Council rejected parts of a tax law because the combined tax rate on certain pensions reached as high as 75.34%. It found this rate too heavy compared to the financial ability of retirees. The Council also struck down other taxes with even higher marginal rates, up to 90.5%. Applying this principle to a 100% inheritance tax would likely face similar challenges, as the Constitution has not specifically exempted inheritance taxes from these rules.