Bernard Arneau, CEO of luxury group LVMH, said that the 2% collection proposal for France’s wealthiest citizens (who have assets worth over 100 million euros) was “a fatal attack on our economy.” The multi-billion items commented on the Sunday Times.
Bernard Arnaud, once The wealthiest person in the worldAccording to Forbes, the property is estimated to be worth $157.1 billion (133.5 billion euros).
The CEO responded over the weekend to something called “Zucman Tax.” It is named after Gabriel Zucman, a French economist who defends the higher taxation of the rich. Zuckman, a professor of economics in Paris and Berkeley, California, published a study last year on the impact of minimum taxes on the world’s ultra-rich taxes.
The debate resurfaced with the inauguration of France’s new prime minister, Sebastian Lecorne, last week. He is tasked with lowering France’s budget deficit and debt. This is the very battle that led to the collapse of the previous government.
France’s Finances are fragileits deficit reached 5.8% of GDP, and its debt had reached 113% by the end of 2024.
François Bailloux and his government were voted by the Parliament on September 8 after they tried to get 44 billion euros approval on budget cuts.
Left-wing politicians from the Socialist and Green Party have urged Prime Minister Sebastian Lecorne to include wealth obligations in their 2026 budget proposal.
The Zucman tax, which applies to 1,800 households, could raise around 2 billion euros per year for the government. However, these incomes could drop as ultra-rich leaves the country as some fear. In 2012, Arnaud himself previously threatened to seek Belgian citizenship after another tax dispute, but he did not follow the plan.
Although Arnaud said nothing about leaving his home country this time, he called Zucman “a distant activist,” adding that “this is not a clear technical or economic debate, but a clearly stated desire to destroy the French economy.”
Zucman responded to Arnault’s words in a recent X post, saying, “Millionaires pay little or no income tax. 86% of French people want to end this privilege.”
Another French economist, Thomas Pichetti, branded Arnaud’s words as “nonsense.” He said in a Sunday X post: “Over 500 wealthy people increased their wealth by 500% between 2010 and 2025. With a tax of 2% per year, it takes a century to return to the 2010 level. He added the question, “Does this put the French economy on their knees?”
Arnaud’s words sparked a fierce debate within the political sphere of France.
The Green Party leader responded to Arnaud’s claims in X, adding, “To be fair, he has a huge conflict of interest when he talks about this subject.”
“He’s doing everything in France to pay the smallest taxes,” Communist Party’s Secretary of State Fabian Russel told the French Island on Sunday. Russel condemned the political decisions made since President Emmanuel Macron’s election in 2017, claiming that the French lost their purchasing power due to increased bills and stagnant revenue.
“On the other hand, very rich people have seen their fate double and triple,” he continued. “This Zucman tax enables fiscal justice. It is the wealthiest person who has to contribute to reducing the deficit,” he said.
Marine Le Pen, the leader of the right-wing national assembly, refrained from taking a consistent stance on Zucman tax.
Collection is popular with the public. In other words, if the party strongly opposes the measure, there is a risk of losing the vote. However, Le Pen also aims to attract support from the business community. This means that showing her support in the collection will also have consequences. So far, she has made the tax a “invalid and dangerous” brand.