Paris: France’s Socialist Party has formally announced its support for the implementation of the so called “Zucman tax,” a proposed levy aimed at the nation’s ultra-wealthy. Olivier Faure, the First Secretary of the party, stated on Wednesday that the Socialists would advocate for 2% wealth tax targeting individuals with net assets exceeding €100 million, as a measure to address growing economic inequality and bolster public finances.
The Zucman tax, named after economist Gabriel Zucman, is designed to ensure that the country’s wealthiest 0.01% contribute a fair share of their fortunes. According to Zucman, the richest individuals in France have seen their wealth grow disproportionately over the past 15 years while paying comparatively less in taxes. If implemented, the tax could generate an estimated €20 billion annually, a significant amount that could help reduce France’s budget deficit, currently at 5.4% of GDP the highest in the eurozone.
Public sentiment appears strongly in favor of the proposed tax. An Ifop poll indicates that 86% of French voters support the measure, including 92% of Macron supporters. This widespread approval has added pressure on Prime Minister Sébastien Lecornu to consider the tax in next year’s budget planning. However, Lecornu has expressed caution, raising concerns about potential capital flight and the possible negative impact on France’s international competitiveness.
The Socialist Party has taken a firm stance, linking its support for the government’s budget to the adoption of the Zucman tax. Olivier Faure emphasized, “If we do not implement this tax, we will not support the budget.” This position places Lecornu in a delicate situation, as he will need Socialist backing to pass the budget in a fragmented parliament. The move highlights the growing tension between fiscal responsibility, social equity, and economic pragmatism in France’s political landscape.
While business leaders warn that the tax could discourage investment and slow economic growth, proponents argue that it is a crucial step toward rectifying systemic inequalities. By ensuring that the wealthiest contribute proportionately, the Zucman tax aims to provide additional funding for essential public services while reinforcing social justice principles.
As France continues to grapple with its budgetary challenges and widening inequality, the debate over the Zucman tax is likely to dominate economic and political discussions in the coming months. The outcome of this proposal could set a precedent for wealth taxation policies across Europe.