The Zucman tax: A first step accomplished. But what next?

The National Assembly recently adopted in first reading a bill aimed at establishing a minimum tax of 2% on the wealth of the ultra-rich. Inspired by economist Gabriel Zucman, this ambitious measure raises many questions about its legislative future and economic implications.

A First Reading Adoption Despite Opposition

On February 20, the deputies voted on the proposed law establishing the minimum wealth tax (MWT) for individuals with a net worth exceeding 100 million euros. This text received 116 votes in favor, 39 against, and 31 abstentions in the National Assembly, despite the government's opposition.

The project is based on a simple principle: to ensure a minimum taxation of large fortunes. To achieve this, it aims to address potential disparities in taxation by instituting a minimum rate of 2% on the taxable net value of wealth, taking into account taxes already paid (income tax, IFI, social contributions, etc.).

However, none of the introduced amendments were adopted. Some aimed to eliminate or limit this tax, while another proposed a "reinforced solidarity tax on wealth," encouraging a more environmentally friendly wealth.

An Uncertain Legislative Path Ahead

While this legislative advancement marks an important step, the future of the Zucman tax remains uncertain. Two major obstacles persist:

1. The Senate: The proposed law must now be examined by this upper chamber, which could oppose it or not schedule it for discussion.

2. Government Opposition: Minister Amélie de Montchalin expressed her disagreement, highlighting the risk of tax expatriation for large fortunes and the liquidity constraints for businesses.

Moreover, the measure includes provisions to combat tax evasion, notably by subjecting to tax individuals who have been domiciled in France for more than 10 years, even after potential expatriation.

What Economic and Fiscal Impacts?

One of the main arguments in favor of this taxation is to reduce inequalities and ensure a fair contribution from large fortunes to state financing. However, its opponents argue that it could penalize investment, forcing companies to redistribute dividends to allow shareholders to pay the tax.

The challenge is thus to find a balance between fiscal justice and economic attractiveness. At this stage, it remains uncertain whether this proposal will lead to a definitive law or if it will be amended or even abandoned.

Conclusion: A First Step Towards Broader Reform?

The adoption of this proposal by the National Assembly marks a significant advancement in the debate on taxing large fortunes. However, the legislative trajectory and economic constraints cast doubt on its implementation in 2026.

To follow the evolution of this reform and other legal news, we invite you to consult our previous article on the subject on Prax Avocats.