Wealthy retirees could be taxed more under French minister’s new proposal

France’s minister for work has prompted controversy - even within her own party and supporters - by suggesting that the wealthiest 40% of pensioners should be taxed more to shore up the social security deficit.

Astrid Panosyan-Bouvet raised the topic in a new interview with TF1, reports Le Figaro.

“The financing of social protection today falls too much on companies and workers,” she said. “There are various taxes and contributions that could be levied on pensioners who can afford it. Depending on the level of pension, it could be €2,000 or €2,500.”

She said that levying these extra taxes on wealthy pensioners would be “a way of raising €500-800 million” and “spreading the effort”.

Pensioners could be asked to contribute via a targeted increase in the contribution sociale généralisée (CSG), or by abolishing their 10% tax allowance, but no details have not yet been announced or proposed.

It comes after predictions on Friday, January 17 from Dominique Libault, chairman of the Haut Conseil du financement de la protection sociale (high council for the financing of social protection), that the social security deficit could reach €20-22 billion. 

Read also: French PM confirms ‘minimum tax’ will apply for high earners: who is impacted? 

Some controversy

Yet, Ms Panosyan-Bouvet’s comments provoked controversy, leading her to later say that she had made the suggestion “in a personal capacity”. 

Similarly, during the government question time in the Assemblée nationale on January 21, minister Patrick Mignola said: “The main objective is in no way to touch taxes for the middle classes.”

So far, however, Prime Minister François Bayrou has not ruled out the possibility of taxing wealthy pensioners more. “The financing of social protection should not be a greater burden on employees,” said a member of the prime minister’s office, without specifying further details.

Unions and employer representatives began a round of talks on pensions on Friday, January 17, with these ideas among those on the agenda to be discussed.

Support for the idea

Some MPs including MoDem MP Perrine Goulet have suggested they could be in support of the idea, to help finance the social security system, particularly when much of it is dedicated to elderly care.

The idea will be put to a vote as part of the new social security budget set to be examined by the new government in February, after being rejected due to the dismissal of the Barnier government in December 2024.

Sharp criticism

However, Ms Panosyan-Bouvet's stance has provoked a negative reaction from some MPs. 

Rassemblement National (RN) MP Julie Lechanteux denounced on X (Twitter): “Taxes, more taxes, always taxes”, while right wing MP Éric Ciotti called the idea “unbearable madness”.

Similarly, despite being aligned with the government, Renaissance MP Mathieu Lefèvre said the idea was “anti-work” and would “regretfully target pensioners who have worked all their lives”.

Some MPs have said that the proposal would send a negative message to those aged 65 and over, a strategic error given that this age group has historically been of considerable support to the Macron government (netting 37.5% of the vote in the last election, far ahead of opponent Marine Le Pen, 18.1%), suggest figures from the Harris Interactive institute. 

“[This would] not be the right method,” said MoDem MP Philippe Vigier, a close ally of Mr Bayrou. “We can do things differently.”

Others have said that the proposal’s controversy risks weakening Mr Bayrou’s already-narrow majority parliamentary support in the Assemblée. 

Read also: Ministers propose people work seven hours unpaid to clear French deficit
Read more: French PM confirms ‘minimum tax’ will apply for high earners: who is impacted? 

In another controversial comment, Ms Panosyan-Bouvet also said she was open to the recent proposal to require working people to do seven hours unpaid work per year, again to help cover the social security deficit.

The suggestion comes days after Mr Bayrou confirmed that a tax on high-income earners would be part of his planned 2025 budget.