France's economy is facing pressure from rising debt and a growing budget deficit. This has led economist Gabriel Zucman to propose a wealth tax of at least 2% on assets for individuals with wealth exceeding 100 million euros (117 million USD).
Left-leaning parties, including the Socialist Party, support the idea. Meanwhile, right-wing parties oppose it, fearing it will cause wealthy individuals to leave France.
LVMH chairman Bernard Arnault criticized the proposal in the UK's Sunday Times, stating, "This is clearly not a technical or economic debate, but a plan to destroy the French economy." Arnault called Zucman "a far-left activist, using his (highly debatable) academic skills to destroy the free economy - the only model that benefits everyone".
Arnault is the chairman and CEO of LVMH, the world's largest luxury goods company. It owns 70 fashion and cosmetics brands, including Sephora, Tiffany & Co, Givenchy, Christian Dior, Dom Perignon, and Moët Hennessy. According to Forbes, he is currently the richest person in Europe, with a net worth of 156 billion USD.
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LVMH chairman Bernard Arnault at the Formula 1 race in Monaco, 5/2025. Photo: Reuters |
LVMH chairman Bernard Arnault at the Formula 1 race in Monaco, 5/2025. Photo: Reuters
In response, Socialist Party leader Olivier Faure wrote on X, "What is destroying our economy and society is the lack of patriotism from the super-rich. They ask the government for support but refuse to participate in solidarity efforts". Green Party leader Marine Tondelier stated that Arnault "has too much of a conflict of interest to speak on this issue".
According to Zucman, the tax could generate about 20 billion euros (27 billion USD) annually if applied to approximately 1,800 households. Zucman also responded to Arnault on X, saying the chairman's attacks were "one-sided" and asserting that he "has never been an activist or a member of any political party".
Renowned economist Thomas Piketty, considered Zucman's mentor, also defended his student. He accused Arnault of "talking nonsense" and dismissed the idea that the tax would "cripple the French economy".
Ha Thu (via AFP)
