Bernard Arnault, the founder of LVMH Moët Hennessy Louis Vuitton and Europe’s wealthiest individual, has expressed serious concerns regarding a proposed 2% wealth tax targeting individuals with assets exceeding €100 million. In a statement to the Sunday Times, he warned that such a tax could impose costs exceeding €1 billion on him and potentially harm France’s economy.
The idea of implementing a wealth tax has gained traction in France amid political unrest and government efforts to enforce unpopular budget cuts. This proposal, referred to as the “Zucman tax” after economics professor Gabriel Zucman, aims to alleviate France’s financial constraints. Zucman argues that the tax could substantially contribute to the country’s budget and has suggested it could generate as much as €20 billion. However, some economists caution that the actual yield might only be €5 billion if high-net-worth individuals choose to relocate.
Arnault, who claims to be one of the largest individual taxpayers in France, countered the proposal by asserting that it represents a threat to France’s liberal economy. He suggested that the tax could drive wealthy individuals away from the country, further complicating the fiscal landscape. His net worth was estimated at $169 billion, largely derived from his substantial stake in LVMH.
Additionally, the political backdrop includes the recent appointment of new Prime Minister Sébastien Lecornu by President Emmanuel Macron, following unsuccessful attempts by the previous administration to pass an austerity budget. The wealth tax debate continues to incite differing opinions among economists and political figures, raising questions about its potential impacts on wealth distribution and economic growth in France.
Source: https://www.theguardian.com/business/2025/sep/21/wealth-tax-would-be-deadly-for-french-economy-says-europe-richest-man-bernard-arnault