Nobel Economists Advocate for 'Zucman Tax' on Ultra-Rich in France
Seven Nobel laureates push for a wealth tax in France, targeting billionaires to combat tax evasion.
Key Points
- • Nobel laureates advocate for a 2% wealth tax on fortunes over 100 million euros.
- • French billionaires hold 30% of the nation's GDP, highlighting wealth concentration.
- • Previous wealth tax proposal was rejected by the Senate after passing the National Assembly.
- • Economists urge France to lead in implementing this tax without waiting for international agreements.
On July 7, 2025, seven Nobel Prize-winning economists issued a striking call for the implementation of a wealth tax in France, notably termed the 'Zucman tax.' This proposal aims to introduce a minimum tax rate of 2% on fortunes exceeding 100 million euros, targeting ultra-rich individuals including billionaires like François Pinault and Bernard Arnault.
The economists, in an open letter published in *Le Monde*, highlighted that the combined wealth of French billionaires accounts for approximately 30% of the country’s Gross Domestic Product (GDP), while billionaires globally represent about 14% of the world’s GDP. They contend that such a wealth tax would be an effective measure against various forms of tax evasion and optimization practices commonly utilized by the ultra-wealthy.
This advocacy comes on the heels of a failed proposal to establish a similar wealth tax in June, which was rejected by the French Senate after passing through the National Assembly. Among the prominent economists supporting this initiative are Daron Acemoglu and Esther Duflo, who expressed their disappointment regarding the Senate’s decision but hold a hopeful outlook toward establishing a global minimum tax on billionaires.
The letter indicates that France has the opportunity to lead by example in this initiative, thereby reinforcing its historical role in fiscal reform with comparisons drawn to the introduction of Value Added Tax (VAT) back in 1954. The advocates argue that France should not wait for an international consensus on tax policies but take decisive action towards implementing the Zucman tax as a way to champion global fiscal responsibility.
Nobel laureate Esther Duflo noted, "We should not wait for international agreements to take decisive actions. France can and should be a trailblazer in fiscal policies that address wealth inequality on a global scale."
As the movement gains traction among influential economists, the future of the proposed wealth tax remains uncertain within the halls of French governance, particularly in light of its previous rejection by the Senate. However, supporters of the tax maintain that the conversation surrounding wealth redistribution and taxation for the ultra-rich will not dissipate easily, signaling a potential resurgence in legislative proposals for the upcoming sessions.