Nobel Economists Advocate for Wealth Tax in France to Combat Inequality
Seven Nobel laureates urge for a minimum wealth tax in France to tackle inequality and enhance public finances.
Key Points
- • Seven Nobel laureates in economics advocate for a wealth tax in France.
- • Current rates for billionaires' tax contributions are significantly lower than those for middle-class taxpayers.
- • They argue that tax optimization strategies enable the wealthy to evade taxes.
- • Imposing a fair tax burden is seen as necessary for social justice.
In a compelling call to action, seven Nobel Prize-winning economists have urged the French government to implement a minimum wealth tax, arguing it is essential to curb rising wealth inequality and improve public finances. Published in *Le Monde*, this opinion piece features prominent economists including Daron Acemoglu, Paul Krugman, and Joseph Stiglitz. They assert that the wealth accumulated by billionaires like Bernard Arnault and Elon Musk is not matched by their tax contributions, which currently sit at strikingly low rates, sometimes as low as 0% to 0.6% of their wealth, and particularly concerning is France's effective tax rate for the ultra-rich, reported at just 0.1%.
The article highlights how sophisticated tax optimization strategies allow the wealthy to substantially minimize their tax liabilities, leading to a significant disparity in contributions compared to middle-class taxpayers. The authors emphasize that these financial practices stem from political choices and argue that establishing a fairer tax system is both necessary and feasible. By advocating for a wealth tax, they believe France can set an example for other nations in tackling fiscal inequalities and promoting social justice.