Bernard Arnault Sparks Controversy with Criticism of Wealth Tax Advocate Gabriel Zucman

France’s wealthiest man and luxury goods magnate, Bernard Arnault, ignited a fierce political debate on Sunday by branding economist Gabriel Zucman a "far-left activist" intent on "destroying the French economy". Arnault’s remarks come amid growing discussions on a wealth tax proposal aimed at alleviating France’s rising public debt and budget deficit.

Zucman has advocated imposing a minimum 2% tax on the fortunes of the ultra-rich, a measure that has gained traction on the left, including within the Socialist Party. This party could play a crucial role in supporting the newly appointed Prime Minister Sebastien Lecornu to maintain governmental stability.

Opponents on the right have condemned the tax, warning it risks prompting wealthy individuals to leave France. Arnault, whose family fortune Forbes estimates at $157 billion, dismissed Zucman’s proposal as ideologically driven rather than economically sound. In a statement, Arnault accused Zucman of using "pseudo-academic competence" to serve an agenda that threatens the "only liberal economy that works for the good of all."

Arnault, who oversees LVMH with its prestigious brands such as Louis Vuitton, Dior, and Moet Hennessy, emphasized his commitment to paying taxes to France. He criticized the proposal as a direct attack on the nation’s economic framework.

The response from left-wing leaders was swift. Socialist Party head Olivier Faure condemned Arnault’s stance on X (formerly Twitter), asserting, "What destroys our economy and even more so our society is the absence of any form of patriotism on the part of the ultra-rich who beg for help from the state but refuse to submit to any form of solidarity."

Green Party leader Marine Tondelier also weighed in, sarcastically noting Arnault’s "nervousness" and highlighting his potential conflict of interest in the debate.

According to Zucman, the wealth tax could generate approximately 20 billion euros ($27 billion) annually by targeting around 1,800 of the wealthiest households in France.

Zucman responded to Arnault’s accusations on X, decrying the "caricatural nature" of the attacks and rejecting any claims that he harbors activist motives. He stated, "I have never been an activist in any movement nor a member of any party."

He further criticized Arnault for attacking the independence and legitimacy of academic research, noting his career includes posts in London, the United States, and Paris.

Thomas Piketty, a renowned French economist and mentor to Zucman, also defended the proposal and dismissed Arnault’s warnings as unfounded, calling the claim that the tax would cripple France's economy "nonsense."

As the debate intensifies, the wealth tax remains a polarizing issue at the intersection of economic policy and political ideology in France.

(Agence France Presse)