French Lawmakers Approved a Ludicrous Tax Against the Rich

On February 20, 2025, the National Assembly of France approved a massive bill proposed by the Ecologist Party to implement a 2% tax on the assets of wealthy citizens, also known as the "Zucman tax," in honor of economist Gabriel Zucman.

This tax would target the wealthiest citizens of the country, those with a net worth exceeding 100 million euros (approximately 110 million dollars), which would affect about 4,000 people in France.

According to the proposal, this tax could generate between 15 and 25 billion euros (approximately 16.5 and 27.5 billion dollars) annually for the state. The initiative was mainly supported by ecologist and left-wing deputies, and it was approved with 116 votes in favor and 39 against.

The main goal of this measure is to reduce the alleged tax evasion by the wealthy, who, according to the tax's advocates, are using tax optimization strategies that allow them to pay a smaller proportion of taxes than most citizens.

To address this issue, the project also includes provisions that target trusts and holding companies, structures often used to reduce tax contributions.

Eva Sas, a member of the Ecologist Party, celebrated the approval of the project, stating that "tax immunity for billionaires has ended."

However, despite the symbolic victory this vote represents, the project is expected not to succeed in the Senate, where most members are right-wing and oppose the measure. Even if the Senate approved the project, it could be challenged by the Constitutional Council, which might consider it "confiscatory" and annul it.

President Emmanuel Macron, who has been a pro-business model advocate, has opposed this type of tax during his term. During his two terms, he has reduced corporate tax, facilitated hiring and firing of workers, and eliminated the wealth tax (ISF), replacing it with the IFI, which only taxes real estate assets.

Supporters of this tax reform argued that "it would encourage investment in more productive parts of the economy" and encourage wealthy individuals to remain in the country, contributing to economic growth and job creation.

Nonetheless, a committee that reviewed the reform in 2023 concluded that it hadn't succeeded in redirecting wealth from the real estate sector to other areas.

The debate on wealth taxation, instead of income, proposed by Zucman, has sparked worldwide outrage as a possible solution to capture part of the wealth.

However, the project has also faced strong criticism, especially from the right, which correctly considers the tax an excessive and counterproductive measure.

Opponents argue that, by imposing a 2% wealth tax, it could discourage investment, endanger entrepreneurship, and negatively affect business growth, which would ultimately be detrimental to employment and the economy in general.

The government, meanwhile, is preparing an alternative to address the tax optimization strategies of the wealthiest.

The Minister of Public Accounts, Amélie de Montchalin, announced that she would present a new tax system in May, known as the "differential minimum tax," which would ensure that the sum of taxes paid by a person represents at least 0.5% of their net worth, excluding professional assets.

This tax would generate only 2 billion euros (approximately 2.2 billion dollars) annually, a significantly lower figure than that proposed by the Zucman tax.