French lawmakers have passed two contentious tax hikes targeting multinational corporations in a surprise move, injecting new uncertainty into negotiations over next year's budget bill.
Two amendments were approved during the lower house's first reading, which include a levy based on global revenues and doubling an existing digital tax, both of which have raised eyebrows among international investors.
Finance Minister Roland Lescure warned that these measures could breach international tax treaties and damage France's reputation as a destination for foreign investment.
The move has sparked tensions with the US, where President Donald Trump has threatened tariffs over similar taxes targeting American firms. The fate of these proposals remains uncertain as they are likely to be struck down by the conservative-controlled Senate in the coming weeks.
These developments add to the complexity of France's budget process, which has become increasingly unpredictable due to the country's deeply fragmented parliament.
Lawmakers' support for these measures is largely driven by concerns over tax avoidance and the need to bring in significant revenue. However, Marine Le Pen's far-right party joined forces with the hard-left France Unbowed on Tuesday to pass the multilateral tax, paving the way for a more unpredictable future.
The socialist lawmakers who had previously agreed to support Lecornu are now focusing on introducing "high-yielding" taxes that spare workers, leaving room for potential compromise.
In light of these developments, lawmakers will be discussing the introduction of wealth taxes later this week or next, with Le Pen ruling out approval of the so-called "Zucman tax".
Two amendments were approved during the lower house's first reading, which include a levy based on global revenues and doubling an existing digital tax, both of which have raised eyebrows among international investors.
Finance Minister Roland Lescure warned that these measures could breach international tax treaties and damage France's reputation as a destination for foreign investment.
The move has sparked tensions with the US, where President Donald Trump has threatened tariffs over similar taxes targeting American firms. The fate of these proposals remains uncertain as they are likely to be struck down by the conservative-controlled Senate in the coming weeks.
These developments add to the complexity of France's budget process, which has become increasingly unpredictable due to the country's deeply fragmented parliament.
Lawmakers' support for these measures is largely driven by concerns over tax avoidance and the need to bring in significant revenue. However, Marine Le Pen's far-right party joined forces with the hard-left France Unbowed on Tuesday to pass the multilateral tax, paving the way for a more unpredictable future.
The socialist lawmakers who had previously agreed to support Lecornu are now focusing on introducing "high-yielding" taxes that spare workers, leaving room for potential compromise.
In light of these developments, lawmakers will be discussing the introduction of wealth taxes later this week or next, with Le Pen ruling out approval of the so-called "Zucman tax".
. I mean, I get where they're coming from, but the US already said they'd impose tariffs if this happens, so it's all kinda backfiring 
. Anyway, I think these proposals will be shot down by the Senate, and France's reputation as a hub for foreign investment is gonna take another hit 
. It's all just adding to the chaos of France's budget process - fragmented parliament, multiple factions, and now possibly more taxes... it's a recipe for disaster 
!
they just passed 2 major tax hikes on multinationals and now everyone's all worried 
about it, especially the US 
trump is threatening tariffs and stuff 
. but you know what really gets me? 
marine le pen's far-right party teamed up with some other lefty group to pass this tax 
. like, i get it, they want revenue and all that 
france's parliament is super fragmented anyway so yeah, this budget process is a total mess 
just found out those French tax hikes are gonna hit multinational corps hard and now the US is threatening tariffs back... can't help but think it's just a never ending cycle of protectionism 
The thought of President Trump throwing tariffs at them is giving me anxiety 
- I'm all for fairness, but this is France we're talking about, land of liberté and... well, more liberté 
. The far-right party joining forces with France Unbowed? That's a whole 'nother level 
. What's next, a tax on Netflix binge-watching 
?
. One thing's for sure, this budget bill is shapin' up to be a wild ride 
!
We just gotta hope that amidst all this uncertainty, someone figures out a way to get things done without breaking the bank