Wealth tax stages comeback in France

France’sslide into political and fiscal dysfunction is generating a groundswell of support for a sweeping wealth tax that would represent a radical break from the pro-business agenda of President Emmanuel Macron .

- Noemie Bisserbe & Stacy Meichtry

Economist Gabriel Zucman is behind the proposal for the wealth tax.

The proposal is the work of French economist Gabriel Zucman, a former adviser to U.S. Sens. Marine Le Pen’s right National Rally party and 92% of Macron’s supporters.

The strong public support is notable in a country where voters agree on little else. The National Assembly is deeply fractured between Macron’s ranks—who typically oppose any tax increases—and lawmakers on the far-right and far-left who want to maintain or even expand public spending levels. The gridlock has depleted France’s finances, driving up its borrowing costs and transforming every budget vote into a referendum on the government.

Instead of narrowing France’s fiscal hole with the €44 billion in public spending cuts—equivalent to about $52 billion—pushed by Francois Bayrou, the prime minister who lost his job in a recent parliamentary vote, Zucman says it is high time the taxman reached into the pocket of some of the country’s wealthiest citizens. He estimates his proposal could raise €20 billion annually, although some economists say it wouldn't raise nearly that much.

“It will be very difficult to ask people to make any kind of sacrifice as long as billionaires pay so little tax,” Zucman said in an interview.