French PM plans new tax on incomes over €250,000 to secure Socialist support

French Prime Minister Sebastien Lecornu is proposing a new tax targeting individuals with annual incomes over €250,000, or €500,000 for couples, aiming to raise an additional €3 billion in fiscal revenue for 2026. One measure would renew a one-off tax introduced last year to ensure high earners pay at least 20% of their income in taxes, while another seeks to crack down on the super-wealthy using holding companies to avoid dividend taxes, affecting around 30,000 such financial structures. This crackdown is expected to yield over €1 billion, with the total additional contribution from wealthy individuals estimated between €4 billion and €4.5 billion. Lecornu, who recently became President Emmanuel Macron's fifth prime minister in two years, is using these tax measures to secure support from the Socialist opposition for the 2026 budget. Although the Socialists deem the proposals "insufficient," they remain open to further negotiations and have called for a 2% wealth tax on France's top 0.01% as part of their conditions. With a fragmented parliament lacking a majority, Lecornu relies on cooperation from rival parties to pass legislation and maintain his position.