A February 18, 2026 Senate note reveals that over 13,000 millionaire households in France pay zero or negative income tax, with higher wealth correlating to a greater likelihood of tax avoidance. Economists attribute this to aggressive tax optimization strategies, primarily through holding companies that shield assets and income from taxation. Additionally, tax loopholes, such as the widely exploited Pacte Dutreil, which offers a 75% exemption on business transmissions, further reduce tax burdens, sometimes to as low as 5% of a property's value. These practices, while legally ambiguous, result in significant revenue losses for the state, estimated at €1-2 billion for the Pacte Dutreil alone and €85 billion annually across all 474 tax niches, exacerbating the national budget deficit.