French government under pressure as lawmakers set to vote on wealth tax

"French lawmakers were due on Saturday to vote on a wealth tax, after a swing group threatened to topple the government if the levy was not added in next year's austerity budget. France is under pressure to pass a spending bill by an end-of-year deadline to rein in its deficit and soaring debt, but efforts have been hampered by a political crisis."

"They originally requested a levy, named after French economist Gabriel Zucman, who hoped to raise around €20 billion ($27 billion) per year from just 1,800 wealthy households. Zucman's proposal was to make people with at least €100 million in assets pay a minimum tax of two percent on that wealth. But the far right and Lecornu's government are against taxing professional assets, which this levy would target."

Lawmakers are scheduled to vote on a proposed wealth tax after the left-wing Socialists threatened to topple the government unless the levy is included in next year's austerity budget. France faces an end-of-year deadline to pass a spending bill to rein in a rising deficit and debt amid political turmoil. Prime Minister Sebastien Lecornu, the third in just over a year, survived a confidence vote by suspending a pensions reform. The Socialists seek a Zucman-inspired levy targeting the ultra-wealthy; the government opposes taxing professional assets and prefers a narrower threshold. Parliament will debate competing proposals and the risk of loopholes.

Read at The Local France