Zucman Tax & ISF: French Debate on Wealth Tax | Libération

French Wealth Tax Debate Ignites Political alliance, Sparks controversy

A surprising coalition in the French National Assembly has led to the adoption of a revised wealth tax, sparking debate over its true impact and beneficiaries. The vote, which saw alignment between parties typically on opposite sides of the political spectrum, has been met with conflicting interpretations regarding whether it represents a genuine restoration of the impôt de Solidarité sur la Fortune (ISF) or a modified version of the existing Impôt sur la Fortune Immobilière (IFI).

A senior official stated that the socialists are “pleased to have voted for the reestablishment of the wealth tax,” emphasizing the inclusion of a broader range of assets, including financial holdings, cash, life insurance contracts, jewelry, automobiles, yachts, and artwork. This expanded scope, they argue, represents a significant step towards greater financial equity.

Did you know? – The ISF, initially implemented in 1986, was a complete tax on net wealth. It was substantially altered in 2018, shifting the focus to real estate holdings with the IFI.

New Tax yield Projected at €2 Billion

Calculations suggest the newly adopted measure is projected to generate €2 billion more in revenue than the previous IFI. However,one analyst acknowledged that “this is only the beginning and this new ISF can be improved very much.” the debate centers on whether the changes truly reinstate the ISF, which was largely dismantled in 2018, or simply represent a significant modification of the existing real estate wealth tax.

According to a Horizons MP, Sylvain Berrios, “this evening, there was an alliance between the RN, the socialists and the MoDem to restore the ISF, by taxing the savings of the French via life insurance.” This unexpected alignment highlights the complex political maneuvering surrounding the issue.

Pro tip: – Understanding the difference between ISF and IFI is key to grasping the current debate.ISF taxed all forms of wealth, while IFI focuses primarily on real estate.

Critics Allege a Gift to the Wealthy

the revised tax has not been without its detractors.Manuel Bompard of La France Insoumise (LFI) vehemently criticized the move, asserting that “The Socialist Party invents a parallel world in which the National Assembly has just reestablished the ISF […] but has actually just given the very rich a gift.” This accusation underscores the deep divisions surrounding the policy and its perceived consequences.

The core of the disagreement lies in the scope of assets subject to taxation and the overall impact on wealth distribution. While proponents claim a more equitable system, critics argue the changes primarily benefit the affluent while offering limited genuine reform.The long-term effects of this political alliance and the revised wealth tax remain to be seen, but the debate signals a significant shift in the French political landscape.

Reader question: – Do you think expanding the tax base to include assets like artwork and yachts will truly address wealth inequality, or is it a symbolic gesture?

Here’s a substantive news report answering the “Why, Who, What, and How” questions:

Why: The French National Assembly recently passed a revised wealth tax measure aiming to address concerns about wealth inequality and increase government revenue. The move was prompted by criticism that the 2018 dismantling of the ISF favored the wealthy.

Who: The legislation was passed due to an unexpected alliance between the Rassemblement National (RN),Socialist Party,and MoDem parties. Key figures include Sylvain Berrios (Horizons MP) and Manuel Bompard (La France Insoumise). proponents include socialist officials who believe the tax has been “reestablished.” Critics include Bompard, who alleges the changes are a benefit to the rich.

What: The revised tax expands the scope of taxable assets beyond real estate (as with the IFI) to include financial holdings, cash