Learning Center

We keep you up-to-date on the latest tax changes and news in the industry.

France Under Fire: PM Under Wealth Tax Pressure, the World Watching

France is once again in the crosshairs of the wealth tax debate. New Prime Minister Sébastien Lecornu finds himself squeezed by left-wing lawmakers and public pressure to adopt a bold “Zucman tax” on the ultra-rich, even as he publicly resists calls for a sweeping tax on wealth. Bloomberg recently reported that Lecornu “has left the door open to measures that could affect the richest, but has criticized calls for a broad-based wealth tax.”

Lecornu's position was more definitive in a Reuters interview: he ruled out reintroducing a general wealth tax and said he would stick to the goal of cutting France’s budget deficit to 4.7% of GDP in 2026. Yet, political reality may force compromises. To pass a budget, he needs the support of the Socialist Party, which demands a new 2% levy on fortunes above €100 million (about $117 million) — the so-called “Zucman tax.”

The proposal enjoys overwhelming popular support. An IFOP poll showed 86% of French voters back a wealth tax on the richest households. Socialist lawmakers have already passed versions of this tax in the lower house (Assemblée), only to see them blocked in the Senate.

What Is the “Zucman Tax”?

Named after economist Gabriel Zucman (a vocal critic of tax avoidance by the super-rich), the proposal is relatively precise: a 2% annual levy on net wealth above €100 million (or higher thresholds) and a requirement ensuring that extremely wealthy households pay at least that rate. Proponents argue it would plug holes in public finances and restore fiscal fairness, given evidence that many billionaires pay lower effective tax rates than middle-income citizens.

As one might anticipate, though, critics are vocal. Bernard Arnault, CEO of luxury conglomerate LVMH and France’s richest man, lambasted the plan as punitive and ideological: “This is clearly not a technical or economic debate, but rather a clearly stated desire to destroy the French economy,” Arnault told The Sunday Times.

He labeled Zucman a “far-left activist” and claimed the tax would deter investment. Zucman, in turn, pushed back, saying his work is grounded in economic research, not politics.

Will It Work or Backfire?

Wealth taxes have a checkered past. Direct net wealth levies are difficult to enforce, prone to legal challenge, and can spark capital flight— especially in open, mobile economies. A Reuters analysis noted that many European governments instead favor alternatives: tougher capital gains taxation, higher inheritance taxes, or exit taxes.

In France itself, the previous ISF (Impôt de solidarité sur la fortune) targeted high-net-worth individuals, but over time was narrowed and ultimately abolished in 2017, replaced by a real-estate–only “IFI. ”ISF critics said many wealthy people simply left or shifted assets abroad.

Economists warn the Zucman tax may yield less revenue in real life than political rhetoric suggests. Some estimates peg potential collections at €20 billion annually from ~1,800 households; others more soberly put that at€5 billion after evasion, exemptions, and legal barriers.

One commentary in Bloomberg Opinion critiqued the plan as “voodoo economics,” noting that while politically popular, it risks unintended consequences for France’s fragile economy.

What This Means Beyond France

France’s debate mirrors conversations elsewhere. Countries like Spain, Switzerland, and Norway maintain some version of wealth taxes, though with varying success and scope. Meanwhile, the global policy community is discussing a global minimum tax on billionaires (a 2% floor), an idea partly inspired by Zucman’s work and currently floated in G20 / EU debates. In the U.S., proposals like the Ultra-Millionaire Tax Act would impose rates on wealth above $50 million tiers — though these ideas remain politically fingered and legally untested.

Culturally and politically, taxing wealth taps directly into narratives of fairness, merit, and social contract. In France, calls of “tax the rich” echo past movements like the Yellow Vests protests, pushing citizens to demand that those at the top contribute more.

If a French wealth tax is blocked or watered down, it may reinforce skepticism in other nations considering similar steps. On the other hand, if even a semi-successful version passes, it could embolden tax policymakers globally who want to confront inequality through fiscal tools rather than rhetoric.

Final Thoughts & Takeaways

  • Lecornu is stuck. He needs Socialist support to pass a budget yet has promised not to reintroduce a sweeping wealth tax.

  • The Zucman tax illustrates central friction in tax policymaking: high public support vs. institutional resistance and economic risk.

  • Wealth taxation is hard to get right. Global precedents show that direct levies either fail or need heavy carve-outs to stay viable.

  • France is a live laboratory. Its outcome could influence U.S., EU, and global debates over inequality, tax design, and the balance between fairness and growth.

In short, France’s new PM is under fire from all sides, but it remains to be seen if any wealth tax can survive geopolitical reality.

Share this article...

Want our best tax and accounting tips and insights delivered to your inbox?

Sign up for our newsletter.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

Benefits of having a business advisor

Your CFO, Reimagined as a Financial Doctor

Diagnosing root causes, prescribing solutions, and guiding your property business toward long-term wealth.

Our CFO | Advisor

Raquel is a passionate business owner. Now, she is returning to her grassroots with a twist - guiding clients with her expertise as a CPA, she can advise your company as your trusted CFO and Advisor.

  • Raquel Deodanes, MS, CPA

    Co-Founder

    CPA with Real-World Experience – I help property managers stay profitable, tax-efficient, and cash flow positive.
    Tax Strategist – Former advisor at California’s revenue agency.
    Trusted by 4,000+ Businesses – Experience across CA, FL, TX, NV, and beyond.
    Real Estate Investor – I understand the financial realities of property management.
    Entrepreneur – I’ve built businesses and know the challenges you face.

Frequently Asked Questions

We diagnose financial inefficiencies, treat problems like poor cash flow or rising costs, and guide you to long-term financial health. That includes cleaning up your books, forecasting cash flow, optimizing operations, and helping you grow your portfolio with confidence — just like a doctor builds a custom care plan for a patient.

Bookkeepers record transactions. CPAs file your taxes. We connect the dots — helping you understand your numbers, strategically improve them, and make smarter decisions throughout the year. We work alongside your existing team to drive performance, not just compliance.

If you're unsure where your cash is going, struggling with rising costs, planning to scale, or just tired of reacting instead of planning — now is the right time. We help you get ahead of problems, not just clean up after them.

Clients typically see improved cash flow, cleaner books, higher NOI, better financial reporting, and a lot less stress at tax time. More importantly, you gain clarity, confidence, and control over your business — and a partner who helps you grow it.

Pricing

Painless, transparent pricing.

Let us take away your stress and give you back your time. Choose your perfect package today.

Base

$499 /mo
  • Dedicated finance expert

  • Bookkeeping with accrual basis

  • Includes P&L, balance sheet, and cash flow statements

Core

$999 /mo
  • Includes everything in Base, PLUS

  • Industry KPIs and financial ratios

  • Monthly virtual 1-hr meetings

  • Monthly rolling budget forecasts

Growth

$1999 /mo
  • Includes everything in Base, CORE

  • Budget vs. actuals variance analysis and review

  • Payroll and HR Platform