France considers new wealth tax to target ultra-rich inequalities

Discussions are intensifying in France regarding new fiscal measures aimed at the ultra-wealthy, including a proposed "differential contribution on wealth" to be considered for the 2026 finance bill. This mechanism seeks to ensure that high-net-worth households pay a minimum effective tax rate as a percentage of their net assets. Unlike previous wealth taxes, this would function as a fiscal safety net, calculating the total taxes already paid—such as income tax and real estate wealth tax (IFI)—and requiring a supplementary payment if the total falls below a statutory threshold.

Proposals by economist Gabriel Zucman highlight significant tax disparities, noting that while middle classes may face tax burdens near 30% of their income, the ultra-rich often pay approximately 2% in income tax. Research by Quentin Parrinello suggests that the use of holding companies allows the wealthy to minimize taxation by reinvesting dividends without triggering personal income tax. These structures can be used to hold personal assets, such as yachts, under professional designations to exploit existing tax exemptions.