French government under pressure over wealth tax proposal

"Prime Minister Sebastien Lecornu who has promised not to use a parliamentary tool employed by previous governments to force through unpopular measures, is under pressure from both the left and the right. Lecornu, the country's third prime minister in a little over a year, has promised to get the job done, after the legislature ousted his two predecessors over cost-cutting measures."

"But the Socialists, a swing group in parliament, have also demanded a tax on the uber-wealthy, without which they have threatened to topple his government. They originally requested a levy, named after French economist Gabriel Zucman, who hoped to raise around 20 billion euros ($27 billion) per year from just 1,800 wealthy households. The Zucman tax Zucman's proposal was to make people with at least 100 million euros in assets pay a minimum tax of two percent on that wealth."

"But the far right and Lecornu's government are against taxing professional assets, which this levy would target. The government instead wants to tax wealth management holdings with at least five million euros in assets. The Socialists have now suggested a minimum three-percent tax on assets of 10 million euros and above, while excluding family and "innovative" businesses, in a concession to the government."

France must pass a spending bill by year-end to rein in a growing deficit and soaring debt, but a political deadlock is obstructing progress. Prime Minister Sebastien Lecornu has vowed not to use a parliamentary tool to force measures and faces pressure from both left and right. The right advanced measures including eliminating overtime taxes, while the left seeks a wealth tax on the super-rich. Socialists pushed for a levy modeled on Gabriel Zucman's proposal aiming to raise about €20 billion from roughly 1,800 households, while the government opposes taxing professional assets and proposes higher thresholds and narrower scope.

Read at The Local France