Nobel Laureate Philippe Aghion Urges Delay on Pension Reform, Critiques Zucman's Wealth Tax Proposal
Philippe Aghion, Nobel laureate, calls for delaying pension reform until 2027 and voices strong opposition to Gabriel Zucman's proposed wealth tax, fearing negative impacts on entrepreneurship and innovation.
- • Aghion advocates pausing pension reform until after the 2027 presidential election, not canceling it.
- • He criticizes Zucman's 2% wealth tax on fortunes over €100 million as harmful to entrepreneurship and innovation.
- • Aghion fears the tax could make France a 'fiscal prison' due to taxing volatile assets.
- • He suggests alternatives like differentiated contributions for wealth over €5 billion and reviving the ISF tax.
- • Aghion stresses the importance of innovation investment to keep France competitive globally.
Key details
Philippe Aghion, the recently crowned Nobel Prize winner in Economics, has made his positions clear regarding two pivotal economic debates currently faced by France. In an interview on France 2, Aghion advocated for halting the ongoing pension reform until after the next presidential election in 2027. He stated, "I think we need to stop the clock now until the presidential elections," clarifying that this pause does not equate to cancellation but rather a temporary suspension with a potential resumption in 2027 if no new measures are enacted (ID 99193).
Simultaneously, at the FDDay event, Aghion criticized Gabriel Zucman's proposal for a tax on the ultra-rich, specifically a 2% levy on wealth exceeding €100 million expected to generate €20 billion annually. Aghion warned this could turn France into a "fiscal prison," deterring entrepreneurs and hindering innovation, particularly in the burgeoning field of artificial intelligence. He highlighted concerns about taxing volatile assets, which could complicate burdens on entrepreneurs. While Zucman suggested options such as paying in-kind or borrowing to alleviate cash flow problems, Aghion proposed alternative approaches including a differentiated contribution for wealth over €5 billion and a possible revival of the ISF (solidarity wealth tax) as more balanced solutions (ID 99206).
Aghion emphasized the critical role of investment in innovation to keep France competitive globally against powers like China and the United States. Both debates spotlight distinct challenges in fiscal policy and social reform strategies, with Aghion advocating measured approaches mindful of entrepreneurship and socio-political timing.
In summary, Aghion firmly opposes rapid pension reforms before 2027 and contests high wealth taxes on ultra-wealthy individuals, urging policymakers to consider economic growth and innovation dynamics. His perspectives add crucial nuance amid ongoing discussions in French economic policy circles.