French lawmakers reject wealth tax on ul tra rich

French lawmakers shot down proposals to levy a wealth tax on the ultra-rich demanded by the Left and on Friday backed instead a diluted government plan to tax assets kept in holding companies.



Eager to calm Socialist lawmakers furious over the rejection of the wealth tax, Prime Minister Sebastien Lecornu said the government would not oppose lifting a freeze on pensions and welfare benefits in his 2026 budget.



The Socialists, who last week had threatened to topple the government if billionaires were not forced to pay more, said Lecornu's concession on pensions and welfare benefits was a first step in the right direction but more was needed.



The vote underscored deep divisions in France's raucous parliament over how to tax the wealthiest citizens, as lawmakers debate Lecornu's belt-tightening budget.