French Lawmakers Dismiss Wealth Tax for Ultra-Rich, Opt for Weaker Asset Tax Plan

French lawmakers have rejected a proposed wealth tax for the ultra-rich, opting instead for a weaker asset tax plan, igniting tensions with the Left and the Socialists.

On Friday, the National Assembly (France) dismissed a proposed wealth tax aimed at the ultra-rich, disappointing left-wing politicians and the Socialist partys demands.
Prime Minister Sebastien Lecornu announced plans to lift the freeze on pensions and welfare benefits in the 2026 budget to appease the discontented Socialists.
Economist Gabriel Zucman, a prominent advocate for wealth tax measures, criticized the diluted asset tax plan that French lawmakers ultimately supported over stronger taxation measures.

Why It Matters

This decision highlights ongoing tensions in French politics, particularly between the government and left-wing factions like the Socialists, as debates over wealth inequality and taxation strategies continue to shape the economic landscape in France.