During the 2026 budget review, French National Assembly deputies adopted an LFI amendment Tuesday evening to tax profits actually realized by multinationals in France, estimated at 26 billion euros by supporters. Backed by a left-RN alliance, it follows the doubling of the GAFA tax from 3% to 6%, despite strong government opposition decrying fiscal overbidding. These votes could yield over 20 billion euros for the state but may be overturned in the Senate.
Tuesday evening, during debates on the revenue section of the 2026 finance bill, an unusual left-far-right alliance enabled the adoption of an LFI amendment. This measure establishes a 'universal tax' on multinationals, taxing their profits proportionally to their actual activity in France, not their fiscal declarations. Inspired by economist Gabriel Zucman's work and Attac, it aims to combat tax evasion and optimization by large groups. Supporters like RN deputy Jean-Philippe Tanguy estimate it would yield 26 billion euros annually, calling it 'justice' against 'white-collar delinquents'.
The government opposed it strongly, with Economy Minister Roland Lescure warning of '20 billion euros of trouble' for France, breaching 125 international tax treaties and OECD rules. Bercy deems the scheme 'inapplicable', risking isolation and harming French business competitiveness. The right and center, through figures like Xavier Bertrand, denounce a 'fiscal nonsense fair' and 'fiscal madness' hijacked by LFI and RN.
Meanwhile, deputies voted to double the GAFA tax from 3% to 6% on tech giants like Starbucks, despite fears of retaliation from the Trump administration. Medef president Patrick Martin reacted on X, criticizing this 'fiscal piling up' that hides failure to control public spending. Adopted in first reading, these amendments face Senate scrutiny under a right-wing majority, where their fate is uncertain, with general rapporteur Philippe Juvin questioning their legal solidity.
