2026 Budget: Left-wing and National Rally MPs vote in first reading on a new law targeting multinationals, much to the government's dismay

Left-wing and National Rally MPs have adopted in first reading a new measure to combat tax optimization by large groups, as part of discussions on the 2026 budget.

In the wake of the vote on a "universal tax" on multinationals , members of parliament adopted a new measure to combat tax avoidance by large corporations on Wednesday, October 29, with votes from left-wing parties and the National Rally. Sponsored by La France Insoumise, the amendment aims to broaden the scope of the 15% minimum tax on multinational profits, to be implemented in 2024 as part of an international agreement led by the OECD to provide a coordinated response to tax evasion by large corporations.

Limited to companies with annual revenues exceeding €750 million, this measure would only affect 10% of multinationals, according to Oxfam. Therefore, the National Assembly voted to lower the threshold to €500 million, thus impacting a larger number of multinationals.

"We see the same alliance between La France Insoumise (LFI) and the National Rally (RN) as yesterday regarding the fictitious 26 billion euros voted on in defiance of international and European rules," denounced the Minister of Public Service, David Amiel, in the National Assembly, referring to the previous day's vote on a measure aimed at taxing the profits of multinationals in proportion to their activity carried out in France. According to its proponents, this measure could bring in up to 26 billion euros for the state budget.

The government camp has been denouncing a "tax bidding war" since Tuesday. "Tax justice, we can work on it (...) but taxing and penalizing success, growth and jobs is not our compass," lamented the Minister of Public Accounts, Amélie de Montchalin, on Wednesday, who opposes the new measure adopted in the first reading.

In the aftermath, the National Rally narrowly succeeded in passing, against the government's advice, an amendment to increase taxes on share buybacks in order to combat speculation. Most left-wing MPs abstained.

Then, La France Insoumise succeeded in passing, in a very close vote, an amendment establishing a one-off tax on superdividends. The National Rally (RN) deputies abstained.