French lower house approves budget amendment to tax billionaires
France's National Assembly on Friday approved an amendment
to the government's 2025 belt-tightening budget bill that would hit the
country's wealthiest individuals with a billionaires tax.
The Zucman amendment, sponsored by leftist lawmakers from La
France Insoumise party and inspired by French economist Gabriel Zucman who
advocates a global billionaires tax, would impose a 2% levy on those with
fortunes in excess of 1 billion euros.
The proposed tax, which leftist lawmakers say could raise an
estimated 13 billion euros in extra revenue, is still far from being
implemented, however, as amendments to the 2025 budget bills must also be
cleared by the Senate. Budget talks are expected to last until December.
The government's 2025 budget plan, unveiled earlier this
month is aimed at plugging a gaping hole in the public finances with 60 billion
euros worth of tax hikes and spending cuts.
The budget bill is expected to get a rough ride in
parliament from opposition parties. Prime Minister Michel Barnier may need to
use special constitutional powers to bypass parliament, although that might
prompt a no-confidence motion against his fragile administration.
- France's largest companies with revenue exceeding 1
billion euros will pay an additional tax on their profits. The tax is expected
to raise 8 billion euros and, if approved, would affect 440 companies.
- Individuals earning more than 250,000 euros a year will
see a temporary increase in income tax, and a minimum tax of 20% will be
introduced for those households only, to prevent the use of tax loopholes,
raising 2 billion euros per year.
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