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France’s Wealth-Tax Fight Sharpens as Column Flags Flaws and Budget Stakes

A Le Monde analysis highlights liquidity snags and legal questions in taxing illiquid assets as the measure becomes leverage in 2026 budget talks.

Overview

  • The Zucman blueprint would levy 2% annually on household net wealth above €100 million, capturing professional assets such as private-company shares.
  • Le Monde criticizes an overheated debate and notes that founders with illiquid stakes, exemplified by Mistral AI, could face sizable bills despite limited cash flow.
  • Economist Gabriel Zucman proposes letting cash‑poor taxpayers sell shares to the state or employees to pay, a fix that raises dilution, control and property-rights concerns.
  • The share-transfer option may not reduce the public deficit if holdings sit in a sovereign wealth vehicle or are allocated to employees, the column warns.
  • Politically, the Socialist Party is conditioning support for the 2026 budget on a Zucman-style levy as business leaders such as Bernard Arnault denounce the plan, polls show broad public support, revenue estimates diverge sharply, and legal hurdles remain under discussion.