French Government Considers Flat Tax Hike Amid Budget Deficit Pressures

The Macron administration is evaluating an increase to France's flat tax rate, potentially raising it from 30% to 36% in the 2026 finance bill. This measure, a hallmark of Macron's fiscal policy since 2018, could generate €1.44 billion in revenue to address the country's structural deficit.

Internal tensions have emerged within the governing coalition as the proposal challenges a key economic pillar of Macronism. Financial analysts warn the hike risks creating investor uncertainty, particularly in capital markets already strained by global macroeconomic headwinds.

No final decision has been made, but the deliberation signals growing fiscal constraints. The move WOULD mark a significant policy shift for a government that previously positioned the flat tax as a stable framework for savings and investment.