The French National Assembly rejected the proposal of the left-wing parties to introduce a 2% annual property tax, the total value of which exceeds 100 million euros. This measure would affect approximately 1,800 households and would generate between 15 and 20 billion euros per year.
Budget Minister Amelie de Monchalin defended the government's position during a parliamentary debate, warning that the tax could lead to an outflow of France's richest taxpayers.De Monchalin argues that legislators should not seek "tax justice at the expense of the economy."
The Assembly approved the introduction of a more narrowly targeted 2% tax on assets held by holding companies that do not pursue any economic goals other than reducing the tax obligations of their owners.Representatives of the Ministry of Finance have identified about 4,000 such structures as potential tax targets. France's budget deficit is 5.8% of gross domestic product, and public debt is 114% of GDP, making it the third country in the eurozone in terms of debt after Greece and Italy.Source: IMI
