Bernard Arnault, chairman and chief executive of LVMH, condemned a proposal to impose a 2 percent annual levy on individuals with assets above 100 million euros.
In an interview with The Sunday Times published on 21 September 2025, the billionaire described the measure as an offensive that is deadly for the French economy.
His remarks immediately fueled national debate. This highlights the widening division between business elites and policymakers under Prime Minister Sebastien Lecornu.
The proposal, referred to as the Zucman tax, is named after French economist Gabriel Zucman. He suggested the levy as part of a strategy to address growing fiscal challenges in France.
France currently has a national deficit that accounts for 5.8 percent of its gross domestic product. This is the highest within the eurozone. Public debt is also about 113 percent of its GDP.
Arnault, one of the wealthiest people in the world with a fortune valued at USD 157.1 billion according to Forbes estimates, would be directly impacted by this policy.
His opposition reflects concerns about supposed business consequences encompassing investment behaviors in the market, employment, and long-term business competitiveness.
Arnault faced controversy in 2012 when he applied for Belgian citizenship during an earlier tax dispute. This raises fear about wealthy individuals relocating due to the tax regime.
Experiences from prior attempts at wealth taxation in France demonstrated the ease with which wealthy households could shift residence or transfer assets abroad.
Supporters of the Zucman tax, including economist Thomas Piketty, argue that the warnings are exaggerated. He pointed out how affluent French have grown richer over the years.
More than 500 of the richest French citizens have seen their wealth grow by nearly 500 percent between 2010 and 2025 through wealth generation efforts, according to Piketty.
He further explained that it would take around a century to reduce fortunes to 2010 levels under a consistent 2 percent annual tax and assuming no new wealth generation occurred.
Gabriel Zucman, often described by critics as leaning toward left-wing views, also argued against the claims of Arnault. He noted that billionaires contribute little to no income tax.
He also emphasized that 86 percent of French citizens agree such privileges should end and added that the proposed measure could generate around 20 billion euros annually.
The debate is polarizing. Left-leaning groups, including the Socialists and the Greens, have been urging Prime Minister Lecornu to include the wealth tax in the 2026 budget.
In contrast, Marine Le Pen and the National Rally party denounced the measure as ineffective and dangerous, arguing it risks capital flight and declining domestic investment activities.
The controversy comes at a time of heightened instability. Former Prime Minister Francois Bayrou resigned earlier in 2025 after unsuccessful attempts to enforce austerity cuts.
Now, with the Zucman tax under consideration, Prime Minister Lecornu faces both strong public support and equally strong resistance from influential economic figures.
Photo Credit: Jérémy Barande / Ecole Polytechnique Université Paris-Saclay / Adapted / CC BY-SA 2.0