Bernard Arnault Launches Strong Opposition to Proposed Zucman Tax
Bernard Arnault criticizes the proposed Zucman tax, warning it threatens the French economy.
- • Arnault calls the proposed tax a 'deadly offensive' against the economy.
- • He claims it may drive away investment and talent from France.
- • The Zucman tax targets fortunes over €1 million at a rate of 1.5%.
- • Ongoing budget negotiations are influenced by this significant debate.
Key details
Bernard Arnault, the chairman of LVMH and one of the world’s wealthiest individuals, has voiced robust opposition to the proposed Zucman tax on high fortunes in France, which aims to target individuals with substantial wealth. In a series of statements, Arnault contended that the tax represents an aggressive threat to the French economy, asserting that it could dismantle the nation’s financial framework and deter investment.
He characterized the tax as an "offensive mortelle" (deadly offensive) against economic growth, arguing that it could lead to job losses and exacerbate issues of economic inequality. "This tax is a clear intention to bring the French economy to its knees," he stated,
Arnault expressed concerns regarding France’s economic health, suggesting that similar taxation measures in the past have led to the exodus of wealth and talent from the country. "If we want to remain competitive, we cannot impose such crippling taxes on successful businesses and individuals," he remarked, emphasizing the potential negative impact on both domestic and international investment in France.
The Zucman tax proposal, introduced by economist Gabriel Zucman, aims to impose a 1.5% levy on fortunes exceeding €1 million. Proponents argue it is a crucial step toward addressing income inequality and generating necessary public revenue, especially in light of the current budget deficits.
In his defense of the French economy, Arnault has called for a balanced approach that fosters growth while ensuring fair taxation. His comments come amid ongoing budget negotiations, with the government weighing various financial strategies to stabilize the economy following the global economic downturn prompted by the pandemic.
As the debate surrounding the Zucman tax intensifies, Arnault’s outspoken criticisms highlight the divide between economic policymakers and influential business leaders, shedding light on broader concerns regarding France's fiscal policies and their implications for the business climate.