French Parliament Rejects Proposed Wealth Tax Amid Economic Concerns

French lawmakers shot down multiple proposals to tax the wealthy on Friday, rejecting ideas promoted by French economist Gabriel Zucman. The proposals included a 2% tax on assets worth more than 100 million euros.

Zucman's plan would have targeted France's ultra-wealthy by imposing the tax on assets exceeding the 100 million euro threshold. But the French Parliament wasn't buying it.

This rejection comes at a time when wealth inequality debates are heating up across Europe. France already has some of the world's highest tax rates, and many wealthy French citizens have relocated to more tax-friendly countries like Belgium and Switzerland in recent years.

For investors and financial markets, this decision signals that France isn't ready to take more aggressive steps toward wealth redistribution. The country abolished its wealth tax in 2017 under President Emmanuel Macron, replacing it with a more limited property tax.

The vote shows the ongoing tension between calls for higher taxes on the rich and concerns about capital flight. France's government has been trying to balance social demands for more equality with the need to keep wealthy taxpayers and businesses from leaving the country.