Economy

French Wealth Tax to Impact Under 1% of Households, Minister Says

France is introducing a new wealth tax aimed at helping reduce the country’s growing deficit, a move that will impact fewer than 1% of households, according to Budget Minister Laurent Saint-Martin.

This initiative is part of the government’s strategy to increase taxes while ensuring that businesses and wealthy entrepreneurs—who contribute significantly to the economy—are not deterred.

Saint-Martin stated in a television interview that this tax would target only the wealthiest individuals, specifically those earning an annual income of €500,000 or more.

Prime Minister Michel Barnier recently announced plans to decrease the budget deficit to 5% by the end of 2025. However, he also indicated that the goal of attaining the euro zone’s common deficit target of 3% will be postponed from 2027 to 2029, with France’s budget deficit projected to reach 6.1% of GDP this year.

Furthermore, the government is proposing special tax measures for major corporations, though specific details were not provided. These companies are expected to have annual profits of at least €1 billion.

In total, France is seeking to implement a €60 billion reduction in its budget to manage its deficit effectively.

Saint-Martin emphasized the need for collective responsibility in restoring public finances.

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