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bernard arnault
2% Wealth Tax on Just 3,000 Billionaires Could Raise $250 Billion a Year: Nobel Economists
"Not only is it necessary to impose a stronger burden of justice on billionaires, but more importantly, it is possible."
Jul 07, 2025
Seven Nobel laureates on Monday published an op-ed advocating for "a minimum tax for the ultrarich, expressed as a percentage of their wealth," in the French newspaper Le Monde.
"They have never been so wealthy and yet contribute very little to the public coffers: From Bernard Arnault to Elon Musk, billionaires have significantly lower tax rates than the average taxpayer," wrote Daron Acemoglu, George Akerlof, Abhijit Banerjee, Esther Duflo, Simon Johnson, Paul Krugman, and Joseph Stiglitz.
Citing pioneering research from the E.U. Tax Observatory, the renowned economists noted that "ultrawealthy individuals pay around 0% to 0.6% of their wealth in income tax. In a country like the United States, their effective tax rate is around 0.6%, while in a country like France, it is closer to 0.1%."
Although the "ultrawealthy can easily structure their wealth to avoid income tax, which is supposed to be the cornerstone of tax justice," the strategies for doing so differ by region, the experts detailed. Europeans often use family holding companies that are banned in the United States, "which explains why the wealthy are more heavily taxed there than in Europe—though some have still managed to find workarounds."
The good news is that "there is no inevitability here. Not only is it necessary to impose a stronger burden of justice on billionaires, but more importantly, it is possible," argued the economists, who say that taxing the overall wealth of the ultrarich, not just income, is the key.
The wealth tax approach, they wrote, "is effective because it targets all forms of tax optimization, whatever their nature. It is targeted, as it applies only to the wealthiest taxpayers, and only to those among them who engage in tax avoidance."
💡 "One of the most promising avenues is to introduce a minimum tax for the ultra-rich, expressed as a percentage of their wealth."Seven Nobel laureates in economics advocate for the Zucman tax in their latest op-ed.Read the full @lemonde.fr article 👇www.lemonde.fr/idees/articl...
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— EU Tax Observatory (@taxobservatory.bsky.social) July 7, 2025 at 8:05 AM
The anticipated impact would be significant. As the op-ed highlights: "Globally, a 2% minimum tax on billionaire wealth would generate about $250 billion in tax revenue—from just 3,000 individuals. In Europe, around $50 billion could be raised. And by extending this minimum rate to individuals with wealth over $100 million, these sums would increase significantly."
That's according to a June 2024 report that French economist and E.U. Tax Observatory director Gabriel Zucman prepared for the Group of 20's Brazilian presidency—which was followed by G20 leaders' November commitment to taxing the rich and last month's related proposal from the governments of Brazil, South Africa, and Spain.
"The international movement is underway," the economists declared Monday, also pointing to recent developments on the "Zucman tax" in France. The French National Assembly voted in favor of a 2% minimum tax on wealth exceeding €100 million, or $117 million, in February—but the Senate rejected the measure last month.
The economists urged the European country to keep working at it, writing that "at a time of ballooning public deficits and exploding extreme wealth, the French government must seize the initiative approved by the National Assembly. There is no reason to wait for an international agreement to be finalized—on the contrary, France should lead by example, as it has done in the past," when it was the first country to introduce a value-added tax (VAT).
"As for the risk of tax exile, the bill passed by the National Assembly provides that taxpayers would remain subject to the minimum tax for five years after leaving the country," they wrote. "The government could go further and propose extending this period to 10 years, which would likely reduce the risk of expatriation even more."
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When It Comes to Taxing the Rich, France’s National Assembly Is Leading the Way
Assembly lawmakers have just given a green light to the world’s first significant tax on billionaire wealth at a time when the most powerful nation on Earth—the United States—is moving in the exact opposite direction.
Mar 12, 2025
Nine of the world’s 10 wealthiest billionaires now call the United States home. The remaining one? He lives in France. And that one—Bernard Arnault, the 76-year-old who owns just about half the world’s largest maker of luxury goods—is now feeling some heat.
What has Arnault and his fellow French deep pockets beginning to sweat? Lawmakers in France’s National Assembly have just given a green light to the world’s first significant tax on billionaire wealth.
“The tax impunity of billionaires,” the measure’s prime sponsor, the Ecologist Party’s Eva Sas, exulted last month, “is over.”
The annual tax on grand fortune that the assembly’s lawmakers have passed, says the UC-Berkeley analyst Gabriel Zucman, represents “amazing progress” that has the potential to set a bold new global precedent.
Sas had good reason for exulting. In the French National Assembly debate over whether to start levying a 2% annual tax on wealth over 100 million euros—the equivalent of $108 million—the leader of the chamber’s hands-off-our-rich lawmakers introduced 26 amendments designed to undercut this landmark tax-the-rich initiative. All 26 of these amendments failed.
But France’s 4,000 or so deep pockets worth over 100 million euros—the nation’s richest 0.01%—don’t have to open up their checkbooks just quite yet. The French Senate’s right-wing-majority has no intention of backing the National Assembly’s new levy, and, even if the Senate did, France’s highest court would most likely dismiss the measure.
French president Emmanuel Macron, for his part, has spent most of the last decade cutting corporate tax rates and axing taxes on investment assets. And his budget minister has blasted last month’s National Assembly tax-the-rich move as both “confiscatory and ineffective.”
None of this opposition, believes the French economist who inspired the National Assembly’s new tax move, should give us cause to doubt that move’s significance. The annual tax on grand fortune that the assembly’s lawmakers have passed, says the UC-Berkeley analyst Gabriel Zucman, represents “amazing progress” that has the potential to set a bold new global precedent.
What makes the National Assembly’s tax legislation even more significant? That tax-the-rich vote has come at a time when the most powerful nation on Earth—the United States—is moving in the exact opposite direction. The new Trump administration, with the help of the world’s single richest individual, is now busily hollowing out the tax-the-rich capacity of the Internal Revenue Service.
President Donald Trump’s predecessor, Joe Biden, had actually made some serious moves to enhance that IRS capacity, hiring—before he left office—thousands of new tax staffers. But those new hires, notes a ProPublica analysis, have now started going through Elon Musk’s “DOGE” meat grinder.
Team Trump’s ultimate goal at the tax agency? To use layoffs, attrition, and buyouts to cut the overall IRS workforce “by as much as half,” The Associated Press reports. A reduction in force that severe, charges former IRS Commissioner John Koskinen, would render the IRS “dysfunctional.”
The prime target of the ongoing IRS cutbacks: the agency’s Large Business and International office, the IRS division that specializes in auditing America’s highest-income individuals and the companies they run.
On average, researchers have concluded over recent years, every dollar the IRS spends auditing America’s richest ends up returning as much as $12 in new tax revenue. The current gutting of the agency’s most skilled staffers, tax analysts have told ProPublica, “will mean corporations and wealthy individuals face far less scrutiny when they file their tax returns, leading to more risk-taking and less money flowing into the U.S. treasury.”
Moves to “hamstring the IRS,” sums up former IRS Commissioner Koskinen, amount to “just a tax cut for tax cheats.”
Donald Trump, agrees the Institute on Taxation and Economic Policy’s Amy Hanauer, “is waging economic war on the vast majority of Americans, pushing to further slash taxes on the wealthiest and corporations, while sapping the public services that keep our communities strong.”
Public services like Social Security. Elon Musk has lately taken to deriding America’s most beloved federal program as a “Ponzi scheme,” and the Social Security Administration’s new leadership team, suitably inspired, has just announced plans to trim some 7,000 jobs from an agency “already at a 50-year staffing low.”
A vicious economic squeeze on America’s seniors. A massive tax-time giveaway for America’s richest. How can we start reversing those sorts of inequality-inducing dynamics? The veteran retirement analyst Teresa Ghilarducci has one fascinating suggestion.
Any individual’s annual earnings over $176,100 will this year, Ghilarducci points out, face not a dime of Social Security tax. A CEO making millions of dollars a year will pay no more in Social Security tax than a civil engineer making a mere $176,100.
If lawmakers removed that arbitrary $176,100 Social Security tax cap and subjected more categories of income—like capital gains—to Social Security tax, Ghilarducci reflects, we could ensure Social Security’s viability for decades to come and even make giant strides to totally ending poverty among all Social Security recipients.
And if we had just merely eliminated the Social Security tax cap on annual earnings in 2023, the most recent stats show, America’s 229 top earners would have paid more into Social Security that year than the 77% of American workers who took home under $57,000.
We could also apply Ghilarducci’s zesty tax-the-rich spirit to the broader global economy, as the inspiration behind France’s recent tax-the-rich moves, the economist Gabriel Zucman, has just observed in a piece that cleverly suggests “tariffs for oligarchs.’
The fortunes of our super rich, Zucman reminds us, “depend on access to global markets,” a reality that could leave these rich vulnerable at tax time. Nations subject to Trump’s new tariffs, he goes on to explain, could retaliate by taking an imaginative approach to taxing Corporate America’s super rich.
“In other words,” Zucman notes, “if Tesla wants to sell cars in Canada and Mexico, Elon Musk—Tesla’s primary shareholder—should be required to pay taxes in those jurisdictions.”
Taking that approach “could trigger a virtuous cycle.” The super rich would soon find relocating either their firms or their fortunes to low-tax jurisdictions a pointless endeavor. Any savings they might reap from such moves would get offset by the higher taxes they would owe in nations with major markets.
The current economic “race to the bottom,” Zucman quips, could essentially become “a race to the top” that “neutralizes tax competition, fights inequality, and protects our planet.”
Lawmakers in France have just shown they’re willing to start racing in that top-oriented direction. May their inspiration spread.
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Forbes Billionaires List Shows 'Utterly Unconscionable' Wealth Growth of World's Richest
The Forbes Billionaires List "is essentially an annual calculation of how much of the wealth created by the global economy is captured by a tiny caste of oligarchs rather than being used to benefit humanity as a whole."
Apr 02, 2024
Forbes on Tuesday released its latest catalog of, as one economic justice campaigner put it, people who should be regulated "out of existence" as the business magazine unveiled its 2024 Billionaires List, featuring near the top a number of U.S. tech billionaires who have aggressively opposed workers' rights movements and fair taxation.
The magazine reported that the number of worldwide billionaires grew by 141 in the past year, with 2,781 people holding wealth that exceeds $1 billion.
Those people own combined assets of $14.2 trillion, exceeding the gross domestic product of every country in the world except the U.S. and China.
Bernard Arnault, head of the LVMH fashion and cosmetics empire in France, currently holds the top slot on the Billionaires List, while Tesla and SpaceX founder Elon Musk and Amazon founder Jeff Bezos are No. 2 and No. 3 on the list.
Both Musk and Bezos have garnered international attention in recent years for their companies' illegal anti-union activity, and Tesla and Amazon have both avoided billions of dollars in federal taxes in recent years.
"It is utterly unconscionable that at a time where masses of the world's population are living in dire poverty, a few individuals are allowed to amass staggering wealth," said Daisy Pearson, campaigns and activism officer at Global Justice Now. "This is only possible through exploitation, and their monopolization of wealth and resources further allows them to amass huge power and influence over decisions that affect our everyday lives. Enough is enough—we should be regulating these barons out of existence."
"It is utterly unconscionable that at a time where masses of the world's population are living in dire poverty, a few individuals are allowed to amass staggering wealth."
Chase Peterson-Withorn, wealth editor at Forbes, told The Guardian that "the superrich continue to thrive" as people across the planet face higher prices of goods, cost-of-living crises, and the costs associated with increasingly frequent extreme weather events and the climate emergency.
"A record-breaking 14 centibillionaires [$100 billion] have 12-figure fortunes," Peterson-Whithorn said.
Luke Hildyard, executive director of the High Pay Center, told the outlet that the Forbes list, rather than an accounting of those who have earned the most money, "is essentially an annual calculation of how much of the wealth created by the global economy is captured by a tiny caste of oligarchs rather than being used to benefit humanity as a whole."
While the global population is "living through incredibly unequal times, lurching from one crisis to the next," added Robert Palmer, executive director of Tax Justice U.K., the richest people in the world amass "extraordinary levels of wealth."
"World leaders need to ensure the superrich are paying their fair share, for example through introducing wealth taxes," said Palmer. "This would help provide the resources needed to tackle multiple crises from inequality to climate change."
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