During the review of the 2026 budget at the National Assembly on Saturday, October 25, deputies rejected the government's proposed freeze on the income tax scale, choosing instead to index it on inflation. This decision, backed by a broad coalition, deprives the state of 2 billion euros in revenue and affects 200,000 households. Meanwhile, amendments defiscalizing overtime hours and child support payments were adopted, as debates on the Zucman tax drag on.
Debates on the revenues section of the 2026 finance bill began on Friday, October 24, at the National Assembly, with around 3,700 amendments filed. On Saturday, a coalition including the far right, right, some Macronists, and Insoumis approved an amendment by Laurent Wauquiez (LR), rejecting the freeze on the income tax scale. This government measure, defended by Minister Amélie de Montchalin, would have generated 2 billion euros and taxed 200,000 additional households. Instead, the scale is indexed on 1.1% inflation.
Other opposition wins include the adoption of full defiscalization of overtime hours, without the 7,500 euro cap, and defiscalization of child support payments up to 4,000 euros per child per year, despite government opposition. The tax abatement cap for journalists was lowered to 3.5 times the SMIC, about 75,600 euros.
The Zucman tax, aimed at taxing the ultra-wealthy, was not examined before next week due to prolonged debates. The Rassemblement National (RN) refuses to support it as is, demanding it match their financial wealth tax without including the primary residence. Éric Coquerel (LFI) opposes a light version, and Gabriel Zucman himself warns against exemptions that would enable tax optimization. Prime Minister Sébastien Lecornu calls for compromises among parliamentary groups.
Meanwhile, Senate President Gérard Larcher warns that the Senate will reinstate the pension reform if the Assembly suspends it, highlighting a 30 billion euro deficit by 2035. Banque de France Governor François Villeroy de Galhau alerts to a 'progressive suffocation' from debt, after Moody’s maintained the rating with a negative outlook, and advocates reducing public spending.
