One of the most talked-about economic issues around the world in 2025 is whether creating a “wealth tax” on the very wealthy is a more effective way to balance government budgets than the current method of cutting social services and increasing taxes on the middle class. French economist Gabriel Zucman told us why he is a leading exponent of creating a wealth tax in France when he spoke with about 20 of us by Zoom on October 20. The measure was under serious consideration in the French National Assembly, but was ultimately voted down by a slim margin.
Zucman says billionaires pay lower tax rates than other groups, quoting a UC Berkeley study on revenue taxation indicating that billionaires pay on average 23% of their income in taxes, while the average American pays 30%. In France, he claimed billionaires pay 25% in taxes, and the average person 51%.
Zucman’s proposal would tax those making more than 100-million Euros/year an additional 2% on the excess amount. He claimed 86% of French people supported the tax; not unexpectedly, billionaires strongly opposed it, including threatening to leave the country — a move Zucman countered by suggesting the tax be applied for as long as seven years after expatriation.
But would a wealth tax deter inward foreign investment? He thinks not, as the benefits of added income would create a more productive and harmonious environment