On June 12, 2025, the French Senate decisively rejected the proposed 'Zucman tax', a 2% minimum tax on the wealth of ultra-rich individuals, with 188 votes against it out of 317 cast.

This proposal, which aimed to impose a minimum tax rate on approximately 1,800 households with assets exceeding 100 million euros, had previously been adopted by the National Assembly in February 2025 with support from left-wing parties.

Despite its initial backing, the Zucman tax faced strong opposition from the right-wing majority in the Senate, leading to its ultimate rejection.

The tax was inspired by economist Gabriel Zucman, who highlighted the issue of tax inequality in France, where wealthier individuals pay a significantly lower percentage of their income in taxes compared to ordinary citizens.

However, critics, including President Emmanuel Macron and Public Accounts Minister Amélie de Montchalin, expressed concerns that the tax could be confiscatory and detrimental to France's economic competitiveness.

The rejection of the Zucman tax underscores the significant challenges in reforming tax policies aimed at the ultra-rich in France, especially given the Senate's right-wing majority.

Additionally, the proposal highlighted ongoing issues of tax optimization in France, where loopholes allow wealthy individuals to minimize their tax burdens.

Activists from organizations like Oxfam and Attac demonstrated outside the Senate on the day of the vote, advocating for the tax with slogans emphasizing the need for wealth redistribution.

While the Zucman tax could theoretically be reintroduced in the National Assembly, its passage remains unlikely without a consensus from both chambers.

Proponents of the tax argued it could generate between 15 and 30 billion euros annually, funds they deemed essential for public services and ecological initiatives.

If reintroduced, the bill would still require review by the Constitutional Council, which could block or modify its provisions.

Despite the setback, left-wing parties may attempt to revive the proposal during future parliamentary discussions, reflecting their unanimous support for the tax.