By Farah Mokrani

Copyright euroweeklynews

France’s Prime Minister Sébastien Lecornu is preparing a new tax on the wealthy – targeting anyone earning over €250,000 a year – in a bold bid to win over Socialist support for his 2026 budget.

The move, reported by Les Échos, could bring in up to €4.5 billion in extra revenue, reshaping the country’s fiscal debate and testing political alliances in Paris.

New tax aimed at top earners

Under the proposal, individuals earning more than €250,000 a year (or €500,000 for couples) would face additional taxes. Lecornu is reportedly considering two main measures, one of which would revive a temporary tax introduced last year to ensure that all high-income households pay at least 20 per cent of their income in taxes.

The second measure targets holding companies – financial structures often used by France’s wealthiest to hold profits and avoid dividend taxes. The Finance Ministry has identified around 30,000 such entities, which frequently accumulate earnings without redistributing them, thus sidestepping taxation.

According to Les Échos, this crackdown on ‘piggy bank’ companies could generate over €1 billion in 2026, while the overall impact of the proposed tax changes could reach between €4 and €4.5 billion in extra revenue.

Balancing politics and public pressure

Lecornu’s government, which lacks a parliamentary majority, is under mounting pressure to secure Socialist backing for its 2026 state budget. His predecessor, François Bayrou, was ousted after his plan for a €44 billion budget squeeze faced heavy resistance.

Now, Lecornu is attempting a more nuanced strategy – one that blends fiscal responsibility with social fairness. During a recent press appearance, he suggested that wealthier taxpayers should contribute ‘a fairer share’ to help the country’s recovery.

The Socialists, however, are pushing for even stronger measures, including a 2 per cent wealth tax on France’s richest 0.01%, which they view as a prerequisite for supporting the budget. “If Lecornu moves towards greater fiscal justice, we won’t vote against his government,” said Socialist leader Raphaël Glucksmann, speaking to BFM TV.

Public opinion appears to be on their side. Polls consistently show that most French citizens support higher taxes on the ultra-rich, especially amid concerns about inflation, energy costs, and the growing gap between wages and executive pay.

A test of survival for Macron’s government

For President Emmanuel Macron, this debate is more than an economic adjustment — it’s a political balancing act. His centrist alliance has struggled to pass legislation since losing its absolute majority in parliament, leaving Lecornu dependent on both the Socialists and moderate conservatives to stay in power.

If the new tax proposal gains traction, it could mark a turning point in Macron’s second term – signalling a shift toward a more redistributive fiscal policy after years of criticism that his government favoured big business and high earners. But if it fails, Lecornu could face the same fate as his predecessor, and France could be pushed back into political instability.

As France heads into a heated budget season, Lecornu’s plan will test whether ‘fiscal justice’ can unite a divided parliament – or deepen the rift between left and right.

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