France is once again at the center of a heated debate over tax policy and economic fairness, as the government faces mounting pressure to address a ballooning deficit and widespread public demands for greater tax justice. On September 29, 2025, Prime Minister Sebastien Lecornu found himself in the political hot seat, tasked with balancing the euro area’s largest deficit while navigating an increasingly turbulent political landscape. At the heart of this storm is a contentious question: should France’s wealthiest citizens and largest corporations pay more to help restore the nation’s public finances?
This debate isn’t confined to the halls of the National Assembly. It has spilled into the streets, with protesters rallying across Paris and other cities, targeting corporate giants such as CMA CGM SA, the shipping company owned by billionaire Rodolphe Saadé. The conversation has reignited memories of France’s long and complicated relationship with wealth taxes, unsettling the country’s richest families and businesses—and putting the government’s economic strategy under a harsh spotlight.
The stakes couldn’t be higher as the government prepares to unveil the 2026 budget in October. Prime Minister Lecornu must secure enough parliamentary backing to avoid a no-confidence vote, a task made all the more difficult by the fractured political climate. Both the Socialist Party and Marine Le Pen’s National Rally—two powerful forces from opposite ends of the spectrum—have rejected earlier spending cuts and are now insisting that new taxes targeting the wealthy become a prerequisite for their cooperation. Without their abstention or support, Lecornu risks becoming the fifth prime minister in less than two years to lose his post, a scenario that would further erode President Emmanuel Macron’s authority.
Macron, who has championed pro-business policies that have driven down unemployment and attracted investment, now faces the persistent label of “president of the rich.” This reputation complicates any attempt to resist new levies on the wealthy, even as his government argues that fiscal reform must be balanced with economic competitiveness.
Several proposals are currently on the table. The Socialist Party has thrown its weight behind a plan inspired by economist Gabriel Zucman. This proposal would impose a 2% levy on fortunes above €100 million, potentially affecting around 1,800 ultra-wealthy residents—including high-profile figures like LVMH founder Bernard Arnault. Arnault, for his part, has publicly argued that such a move would harm France’s economy by discouraging investment and innovation.
The National Rally, meanwhile, has suggested a somewhat more targeted “tax on financial fortune.” Their version would exclude one main residence, business assets, and most investments in small and medium-sized enterprises, aiming to avoid penalizing entrepreneurship and family businesses. Independent lawmakers are also making their voices heard, proposing the revival of scrapped levies on holding companies and a revision of inheritance tax breaks known as the Dutreil rules—these, they argue, have been abused by wealthy families to minimize their tax obligations.
Public sentiment is overwhelmingly in favor of higher taxes on the rich. According to an Ifop poll conducted in September 2025 and reported by Invezz, a striking 85% of French citizens support the idea that the wealthiest individuals and largest companies should bear more of the burden in repairing the budget. Even among supporters of Macron’s own centrist party, that figure jumps to 92%—a clear sign that the mood has shifted decisively toward greater fiscal equity.
This groundswell of support has translated into visible activism. Demonstrations have erupted across the country, with protesters specifically targeting the offices of major corporations and the residences of wealthy business leaders. The message from the streets is unambiguous: ordinary citizens want the richest to do more to help France weather its fiscal storm.
But the business community is pushing back. Industry groups and economic leaders warn that ramping up taxes on the wealthy could have unintended consequences, such as driving capital—and the jobs it creates—out of France. They point to the example of former President Francois Hollande’s 75% supertax, a policy that was short-lived and widely criticized for prompting a wave of wealth migration. "We’ve seen this movie before," one business leader remarked, echoing concerns that history could repeat itself if the government moves too aggressively.
These concerns are not without merit. France has a storied history of experimenting with wealth taxes, beginning with the introduction of the Impôt sur les Grandes Fortunes under Socialist president Francois Mitterrand. Over the past four decades, the tax has been scrapped, reinstated, and modified several times, reflecting the country’s ongoing struggle to balance fiscal needs with economic growth. In 2017, President Macron narrowed the scope of the tax to cover only property, a move that was seen as part of his broader effort to make France more attractive to investors.
Now, with the Zucman-inspired proposal gaining traction, comparisons to earlier wealth tax regimes have resurfaced. Some lawmakers argue that a new approach is needed—one that aligns with broader international debates about taxing billionaires and closing loopholes that allow the ultra-rich to shield their assets.
For the moment, Prime Minister Lecornu has ruled out reviving the old ISF (Impôt de Solidarité sur la Fortune), but he faces growing pressure to find a solution that satisfies both the public’s demand for justice and the need to maintain France’s economic competitiveness. As fiscal conditions worsen, the government’s room to maneuver is shrinking, and the political cost of inaction is rising.
Adding to the government’s headaches, French rail unions announced on September 29, 2025, that they would launch a nationwide strike on October 2. All four SNCF federations are united in the action, which is expected to cause even broader disruption than last month’s protest—particularly to the country’s high-speed TGV services. According to RailTech, the strike could surpass the chaos of the infamous “Black Thursday,” further testing the government’s ability to keep the country running smoothly during a period of heightened social and political tension.
The convergence of fiscal challenges, political brinksmanship, and social unrest paints a picture of a nation at a crossroads. As France prepares for a pivotal budget battle and braces for widespread transport disruption, the choices made in the coming weeks will shape not just the country’s economic future, but also its social contract. The debate over who pays—and how much—has never felt more urgent.
France’s leaders, caught between a restless electorate and a wary business community, now face a defining test. Whether they can strike a balance between fiscal responsibility and social justice remains to be seen, but one thing is clear: the nation’s appetite for change is stronger than ever.