In a significant move, a left-wing coalition in France has successfully pushed for a permanent tax on the rich, overriding the government’s initial plan for a temporary measure. This decision was made during a late Tuesday vote in the National Assembly, where deputies from the left-wing coalition joined forces with the centrist Modem party to make the tax permanent.
The tax, which targets households where a single person earns more than 250,000 euros ($270,000) a year or a couple more than 500,000 euros a year, is aimed at reducing France’s crippling public deficit. The government estimates that this tax will generate two billion euros in 2025. Despite the government’s insistence that the measure would be “exceptional,” the left-wing coalition argued that it was necessary to ensure everyone makes an effort to address the financial challenges.
Mathilde Panot, the parliamentary leader of the hard-left France Unbowed (LFI) party, celebrated the vote as a “victory.” Eric Coquerel, head of the national assembly finance commission and an LFI deputy, emphasized that while everyone is asked to make an effort, the wealthy should not be exempt. However, Mathieu Lefevre, a lawmaker for President Emmanuel Macron’s centrist Rebirth party, condemned the vote as a kind of “permanent tax revenge” and suggested the government use its constitutional right to pass the law without a parliament vote.
The current government, led by Prime Minister Michel Barnier, faces significant challenges as it lacks a majority in the 577-seat National Assembly, holding only 212 seats. This means the government will have to rely on the support of other parties, including the far-right National Rally (FN), to pass its budget and other legislative measures.
