Tax Talk: France's Debate on Who Should Pay More

France is engaged in a heated debate about taxation and who should bear the burden of filling a significant budget gap. The government and lawmakers are divided on the best approach, with some advocating for higher taxes on the super-rich, while others express concerns about potential economic repercussions.

The Left-Wing Proposal

Left-wing politicians propose a tax on individuals with assets exceeding 100 million euros. Economist Gabriel Zucman supports this idea, arguing that it could generate substantial annual revenue. He emphasizes the principle of fairness, stating that the wealthy should contribute at least as much as ordinary citizens.

The Prime Minister's Counterargument

Prime Minister Sebastien Lecornu disagrees with the left-wing proposal. He believes that imposing excessive taxes on the rich could negatively impact businesses. Instead, he advocates for taxing individuals who conceal their wealth in special companies to avoid taxes. Although this measure would yield less revenue, Lecornu argues that it is more beneficial for the economy.

The Political Landscape

The government currently lacks a majority in parliament, necessitating support from other lawmakers to pass the budget. Socialist lawmakers push for stricter regulations on hidden wealth, asserting their goal is fairness rather than confiscation of wealth from the rich.

The Road Ahead

The final decision remains uncertain. The budget must still be approved by the Senate and the constitutional court, ensuring that the debate is far from over.