Europe’s richest man, Bernard Arnault, has ignited a heated debate over a proposed 2% wealth tax in France, warning it could severely damage the nation’s economy.
The tax, targeting assets exceeding €100 million, has gained traction amid France’s ongoing political and budgetary challenges.
The LVMH founder argues the measure threatens the liberal economic model, which he claims benefits all.
As the government grapples with budget constraints, the proposal has stirred tensions, with Arnault and others cautioning against its economic fallout.
The wealth tax, championed by economist Gabriel Zucman, could generate up to €20 billion to address France’s strained finances, though critics estimate a lower yield of €5 billion if wealthy individuals relocate.
Arnault, whose fortune is tied to his 48% stake in LVMH, labeled the tax an “offensive” that could undermine economic stability.
He emphasized his significant tax contributions through his businesses, positioning himself as a defender of France’s economic framework.
The proposal has fueled a broader debate, with 86% public approval according to a recent Ifop poll.
Zucman, a professor at the Paris School of Economics, defends the tax as a solution to wealth inequality, rejecting claims of ideological bias.
Meanwhile, Prime Minister Sébastien Lecornu faces pressure from the Socialist Party to adopt the tax or risk a confidence vote.
The controversy underscores France’s struggle to balance fiscal needs with economic growth, as stakeholders await the government’s next move.