The finance commission rejected on Wednesday, October 7, amendment I-CF585 from the Ecologist and Social group, which aimed to raise the flat tax (PFU) rate from 12.8% to 22.8%, bringing total taxation on dividends and capital gains to 41.4% with 18.6% social contributions. The signatories highlighted a surge in French dividends, rising from 54.3 billion euros in Q2 2024 to 61 billion two years later, representing over a quarter of all dividends paid in Europe. The commission rejected the text by 31 votes against, 3 in favor, and 2 abstentions, before burying the entire revenue section of the 2027 budget bill on Friday, October 9. According to general reporter Philippe Juvin, the week’s votes widened the deficit by approximately 9.6 billion euros, bringing the public deficit to 5.35% or 5.4% of GDP. The final vote on the first part of the budget is scheduled for October 20 in the chamber.
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