When RN, PS and MoDem MPs join forces against LFI and Renaissance to vote for the "new wealth tax"

A moment of hesitation and incomprehension in the National Assembly. Invited to vote on the transformation of the real estate wealth tax (IFI) into a "tax on unproductive wealth", the deputies approved the amendment of MoDem deputy Jean-Paul Mattei, sub-amended by PS deputy Philippe Brun , by 163 votes against 150.

But the votes of the different groups revealed a very surprising distribution: on one side, a motley alliance bringing together the National Rally, the Socialist Party, the Democratic Movement, and the members of the centrist Liot group. This surprising coalition infuriated the defeated groups, including La France Insoumise and Renaissance, unexpected allies.

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While Philippe Brun welcomed to the press the "reinstatement of the wealth tax" (ISF) abolished by Emmanuel Macron in 2017, Renaissance MP Prisca Thévenot asserted that what had been voted on was "a tax invented by Marine Le Pen herself," and in no way a return of the ISF, "otherwise (...) La France Insoumise would have voted for it . " "Yes, there are indeed 'backroom deals' between Mr. Faure and Ms. Le Pen," she asserted on her social media account. The National Rally (RN) applauded the vote on a tax "inspired" by its platform.

Horizons MP Sylvain Berrios denounced a measure that will "tax the savings of the French ." The left, excluding the Socialist Party, overwhelmingly voted against the amendment. "We weakened the IFI (real estate wealth tax) without even reinstating the ISF (wealth tax)," criticized the chairman of the Finance Committee, Éric Coquerel of La France Insoumise. The Prime Minister's entourage emphasized that the government was "opposed to the reinstatement of the ISF."

Furious, Manuel Bompard, coordinator of La France Insoumise, said he was "stunned by the vote that just took place." "There's an alliance between the Socialist Party and the National Rally to exempt Ms. Le Pen's château from wealth tax on real estate," he erupted in the chamber. This intervention was applauded by members of the presidential camp, a very rare occurrence.

On the X-ray, Olivier Faure offered a convenient excuse: "A new wealth tax was adopted based on a Modem amendment, further amended by the Socialists." But the Socialist Party leader was quickly criticized by LFI (France Unbowed) MPs, including Claire Lejeune and Danièle Obono. "What just happened is astounding. The Socialist Party just voted WITH THE RN (National Rally) for a tax that removes the progressivity of the IFI (real estate wealth tax) and spares residences worth up to €1 million. This is potentially a DECREASE in revenue compared to the IFI," wrote Lejeune, while Obono called on the Socialist leader to "get a grip." "By letting Lecornu lead you on a wild goose chase, you've lost all sense of direction," she mocked.

Jean-Paul Mattei's amendment, in its original wording, stipulated that "unproductive assets" such as "non-productive real estate, tangible personal property (precious objects, cars, yachts, airplanes, furniture, etc.), digital assets, and life insurance policies for funds not allocated to productive investment" would be included in the tax base, according to its explanatory memorandum. Conversely, it excluded productive real estate assets from the IFI tax base, defining as such properties rented for a period of more than one year that meet environmental criteria. It also modified the IFI tax scale, replacing the progressive scale with a single rate of 1%.

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A sub-amendment tabled by Philippe Brun during the parliamentary recess in the early evening and adopted by the deputies, excluded one asset per tax household from the tax base, up to a limit of one million euros. A similar amendment had been tabled by the National Rally (RN), excluding the principal or sole residence from the tax base, in accordance with its proposal for a Financial Wealth Tax (IFF). Another sub-amendment by Philippe Brun reinstated rental properties in the tax base. Jean-Paul Mattei wanted to raise the tax payment threshold to two million euros, but another sub-amendment by the Socialist deputy maintained the threshold at 1.3 million euros.