French Billionaire Warns Wealth Tax Will Harm Economy LVMH Owner Criticises Government Plan

The billionaire owner of LVMH, Bernard Arnault, has voiced strong opposition to France’s proposed wealth tax, warning that its introduction could significantly damage the nation’s economy. Arnault, currently the richest individual in France, described the plan as a deliberate attack on successful enterprises, rather than a reasoned economic policy.

The measure, championed by economist Gabriel Zucman and backed by the Socialist Party, would impose a 2 per cent annual levy on fortunes exceeding €100 million. Arnault and his family, whose wealth amounts to $157 billion according to Forbes, could see their tax bill rise by around $3 billion if the policy becomes law. He argues that the measure is driven not by economics, but by ideology, likening its architect to a far-left activist whose goal is the destruction of the liberal economy.

Public support for the tax is robust, with polls suggesting that 86 per cent of French citizens favour its introduction amidst the country’s mounting debt crisis. Pressure is now mounting on Prime Minister Sébastien Lecornu, who risks facing a confidence vote if he fails to include the measure in the 2026 budget. Critics warn that forcing such policies could undermine investor confidence in France’s economic future.

Zucman, a professor at the École Normale Supérieure and the Paris School of Economics, has gained prominence for his efforts to map and analyse global wealth and tax evasion. He firmly rejects claims of activism, insisting that his work is purely academic and rooted in long-term research into tax optimisation by the ultra-wealthy. He has responded to Arnault’s remarks by defending the academic legitimacy and objectivity of his analysis and reiterating the importance of independent research in an era where economic freedoms are under threat globally.

The debate comes as France grapples with slow growth and high public debt, leaving the government searching for ways to fill the deficit. With strong public backing, it remains to be seen whether the Prime Minister will bow to political pressure and include the tax in next year’s budget or risk instability by resisting the left-wing alliance. Business leaders continue to warn that an aggressive approach to taxing the rich could have unintended consequences for the broader economy.