Introduction to the Wealth Tax Debate
The founder and CEO of Luxury giant LVMH, Bernard Arnault, who is currently France’s richest man with a fortune of around $169 billion, has spoken out against a proposed wealth tax. He believes that the tax, which would require a 2 percent tax on assets over €100 million, would "kill the French economy."
The Proposed Tax
The idea of the economic professor Gabriel Zucman, the proposed measure could collect up to €20 billion per year from 1,800 households. However, other economists argue that it would only collect €5 billion if the rich were to leave France. Arnault, who would lose more than $1.2 billion with the tax, has accused Zucman of being "primarily a left" that uses "pseudo-academic competence" to promote an ideology that aims at rejection of the liberal economic system.
The Debate
Arnault stated, "This is clearly not a technical or economic debate, but a clear wish to destroy the French economy." He added, "I cannot believe that the French political forces that have ruled or governed the country in the past could give this offensive that is fatal to our economy." Zucman, Professor of Economics at the Paris School of Economics and the École Normale Supérieure, rejected Arnault’s accusations, saying that he has never been an activist for a movement or party.
The French Government’s Stance
The French government is currently under pressure to reduce its growing debt and budget deficit. The wealth tax, which some refer to as the "Zucman tax," has been accepted by the left. The Socialist Party has called for the new French Prime Minister Sébastien Lecornu to reduce the need for expenses in combating the public deficit in the 2026 budget. The right fears that the program can cause the rich to leave France and take their wealth with them. Lecornu has informed French regional newspapers that he is open to discussion about "tax justice and sharing the burden," but added that "professional assets" must be treated with "care."
The Author
The article was written by Rachel Cormack, a digital editor at Robb Report. She has previously worked for HuffPost, Concrete Playground, and several other online publications in Australia. Cormack is a skilled writer and editor with a strong background in online publishing.
