French Assembly rejects tax cap reduction

The French National Assembly on October 15, 2026, rejected a proposed reduction of the 10% tax deduction cap for retirees included in the government's 2027 budget plan. The measure, which aimed to lower the cap from 4,439 to 3,000 euros, was defeated by a vote of 116 to 30.

Government aimed for 1.4 billion euros in savings

The government had proposed this change to achieve 1.4 billion euros in savings, but the Assembly largely opposed the reduction, with a majority of deputies voting against it. The measure was part of the government's 2027 finance bill, which included a series of efforts to reduce the financial burden on the state.

Proposal would have affected 4.6 million households

The proposed tax reduction would have affected 4.6 million households, particularly those with modest incomes, according to some estimates. Amendments to remove the proposed tax cap were submitted by a large part of the political spectrum, with deputies from the Left, Democrat and Republican group adopting an amendment that rejected the measure.

Deputies argued against cutting support for retirees

The amendment, No. I-3899, was adopted by the Assembly, with its authors arguing that the affected households were not privileged but had modest living standards. The government's proposal was opposed by several deputies, including Kévin Mauvieux of the National Rally (RN), who said, "Let us stop cutting the French," and Estelle Mercier of the socialist party, who noted that the measure would affect "modest retirees."

Budget outcome remains uncertain

David Amiel, Minister of Public Accounts, stated that the effort requested from retirees was 10%, while they represented 25% of the population. The outcome of the 2027 budget remains uncertain, with the text potentially passing through a 49.3 majority, allowing the government to choose the adopted amendments. The vote does not confirm the reduction planned by the government, and only the final version of the law will determine whether the measure is actually included in 2027.