Bernard Arnault, France’s richest man and CEO of luxury powerhouse LVMH, has denounced a proposed 2% tax on fortunes above €100 million ($117 million).
In an interview with a British outlet, Arnault described the plan as a serious economic risk. He argued that such a measure could destabilize France’s financial system and undermine investor confidence.
Rising Political Pressure on Government
The billionaire tax debate is gaining momentum in France. Prime Minister Sébastien Lecornu is under growing pressure from the Socialist Party, which insists the levy must be included in the 2026 national budget.
Party leaders have even threatened a no-confidence vote if the government refuses, raising the stakes for Lecornu’s administration.
Meanwhile, public support is overwhelming. An Ifop survey revealed that 86% of French citizens back the proposal, reflecting widespread frustration with wealth inequality.
Arnault Criticizes Proposal’s Architect
Arnault singled out economist Gabriel Zucman, who designed the tax proposal. He accused Zucman of disguising far-left activism as academic expertise and seeking to dismantle France’s liberal economic system.
According to Arnault, this system supports prosperity and benefits society at large, while punitive taxes could discourage investment and weaken growth.
Zucman Pushes Back
Gabriel Zucman, professor at École Normale Supérieure in Paris and at UC Berkeley, rejected Arnault’s allegations.
On social media, he stressed that his research is independent and evidence-based, not driven by ideology. Zucman noted that over 300 economists endorsed similar proposals last year under the Nouveau Front Populaire’s platform.
He argues that the billionaire tax is essential to close disparities, pointing out that many ultra-rich households pay proportionally less than ordinary workers.
Broader Economic Implications
The billionaire tax debate has evolved into a larger conversation about fairness, economic justice, and France’s future direction.
- Supporters say the levy would reduce inequality and fund vital public services.
- Opponents warn it could trigger capital flight and damage France’s competitiveness.
As the 2026 budget deadline approaches, the outcome will not only shape France’s financial policies but also influence global discussions on taxing extreme wealth.
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