Billionaires Face European Wealth Tax Reckoning as Zucman Sparks Political Storm

Gabriel Zucman, the Paris School of Economics professor famously dubbed the “billionaire’s nightmare”, has ignited fierce debate across France and beyond with his audacious proposal for a new wealth tax. His plan would see individuals with a net worth exceeding €100 million subjected to a 2 percent annual levy—a policy aimed at recalibrating economic power in a climate of intensifying social discontent and fiscal strain.

As public frustration over inequality rises and deficit-plagued governments seek fresh sources of revenue, Zucman’s suggestion has met both fierce opposition and widespread support. While French elites, notably LVMH’s Bernard Arnault, deride the scheme as reckless and damaging to the economy, polls show that a majority of voters back the initiative. Criticism has escalated to personal attacks, with some branding Zucman a radical, yet he remains unwavering and insists that the rationale behind the tax is both logical and democratically mandated.

Zucman’s distinct approach targets only those who pay less than 2 percent of their wealth in income tax each year, affecting approximately 1,800 of France’s ultra-wealthy. Those already meeting this threshold would be exempt. Crucially, individuals who relocate abroad would still be liable for the tax for five years, tightening traditional loopholes that allowed the super-rich to sidestep previous levies. Zucman contends that his design—no exemptions, no deductions, no escape routes—addresses historic failings that prompted the abandonment of earlier wealth taxes, not just in France but across Europe.

Rising fortunes among the global elite heighten the stakes of this policy clash. The world recently witnessed Elon Musk’s wealth briefly exceeding the $500 billion mark, a development that fuels wider debate about inequality and democracy. Zucman argues that such concentrations of wealth pose risks to democratic institutions by giving a few individuals outsized influence over markets, policy, and public discourse, rather than simply rewarding enterprise and innovation.

Political turbulence in France, marked by government instability and mounting economic grievances, has amplified support for measures like the so-called “Zucman tax”. The proposal passed the National Assembly but faces resistance in the Senate and among business leaders who warn of adverse consequences for entrepreneurship and competitiveness. Yet Zucman asserts that his high €100 million threshold shields most business creators, and suggests that very wealthy founders could satisfy their obligation through minor equity transfers to a National Sovereign Wealth Fund if necessary.

Beyond the borders of France, Zucman’s ideas are sparking debate throughout Europe, with other countries watching developments closely amid their own budgetary pressures. Polls indicate robust public appetite for even more sweeping versions of a wealth tax in the United Kingdom, despite official resistance. Zucman sees the unfolding saga as reminiscent of the introduction of the progressive income tax a century ago—a potentially irreversible turning point that may set a precedent for advanced economies globally. He maintains that the challenge is not the concept of wealth taxation itself, but crafting an effective law without concessions or loopholes that can command both political and popular legitimacy.