The French National Assembly has approved budget amendments imposing a new, long-term tax on high-income households, expanding its initial temporary scope envisioned by the executive. Affected households, earning over 250,000 euros annually, number approximately 24,300. While some MPs argue for fairness in taxation, others in the government express concerns over the permanence of these measures. Discussions on potentially reinstating the original budget text without the amendments are set to take place, with the government considering constitutional mechanisms for implementing its plans.
The executive branch faced a significant setback when Parliament approved budget provisions that introduce a new tax contribution for high-income earners. Several amendments were adopted, primarily by left-leaning and National Rally legislators, effectively expanding the scope of this tax measure. Initially, the government intended this measure as a temporary obligation for wealthy households lasting three years; however, the National Assembly approved a shift towards making this tax mechanism a long-term fixture.
One pivotal amendment removed the phrase ‘until the taxation of income for the year 2026’ from paragraph 22 of Article 3 of the 2025 Finance Bill. As a result, individuals with an annual income exceeding 250,000 euros (or 500,000 euros for couples) would be subject to increased taxation over time. According to a study from the French Budget Ministry, this could impact approximately 24,300 households. Additionally, centrist Charles de Courson (Liot) has advocated for restrictions on wealthy taxpayers’ abilities to utilize tax breaks or credits to lessen their tax burden.
Potential Reversal of Amendments via Government Action
Chairman of the Finance Committee, Eric Coquerel from the Insoumis, criticized the government’s approach, stating, ‘You’re asking everyone to make efforts (…) in a sustainable way. And the only people to whom you say ‘don’t worry, it’s exceptional’, are those who have plenty to live on.’ Following the vote, Mathilde Panot, leader of the LFI deputies, echoed these sentiments, emphasizing that ‘the Assembly has voted to extend and perpetuate the surtax on high incomes. Tax justice cannot be temporary.’
Budget Minister Laurent Saint-Martin countered, saying that the impacted households need to ‘know […] that there will be an end’ to such measures for ‘visibility’. Macronist Mathieu Lefèvre (EPR) expressed concerns about the amendments, suggesting they embody a form of permanent fiscal revenge.
However, the longevity of these amendments might be at risk. If the government opts to invoke Article 49.3 of the Constitution to advance its 2025 Finance Bill, it could reintroduce the original version of the text, excluding the amendments. Several lawmakers from the ruling majority are hopeful about this outcome; Lefèvre stated, “I hope the government will not retain this idea of perennity” in the final version of the bill.
Clarity on this issue is expected soon. The executive announced a discussion regarding the use of this constitutional provision for the budget in the upcoming Council of Ministers meeting. Maud Bregeon remarked on France 2, ‘We’ll discuss it, as is the rule; it’s a constitutional possibility open to the government.’ She emphasized that adopting the bill without a vote ‘is not the Prime Minister’s wish, and we’ll allow debates to occur as needed’ in the National Assembly. Nonetheless, the debates may not be heading in the direction Matignon had hoped.