Paris, France – The MEDEF, France’s largest employer federation, is warning of a “great employers’ mobilization” should the government increase taxes on businesses, notably through the proposed “Zucman tax” on ample wealth. Patrick Martin, the MEDEF’s head, delivered the stark message following meetings wiht New Prime Minister Sébastien Lecornu Friday evening.
The threat comes as the government weighs new fiscal policies, including a potential tax on extreme wealth championed by the left and named after economist Gabriel Zucman. martin argued the Zucman tax, unlike the former wealth tax (ISF), would incorporate a company’s working capital into its asset valuation, potentially forcing profitable but non-dividend-paying companies - particularly in the tech sector – to sell assets to cover the levy. he characterized such a move as “spoliation.”
Martin further stated that French companies are already heavily taxed, facing “13 billion euros in additional direct debits in 2025,” and are “the most imposed among the countries of the OECD, deduction made of the aids they receive.” He expressed disappointment that promised reductions in the CVAE, a production tax, have not materialized.
The MEDEF leader contends that the budgetary proposals of the Socialist Party would have a “recessive effect” on an already fragile economy. He emphasized that businesses “play an important role” in economic stability and growth, framing increased taxation as a barrier to investment and risk-taking.
