Bernard Arnault clashes with economist Gabriel Zucman over wealth tax plan

French economist Gabriel Zucman (left) and chief executive of LVMH Bernard Arnault. Combination photo / Joel Saget, AFP

An economist behind a wealth tax plan embraced by the French left today urged France’s richest person, Bernard Arnault, to show “respect for the truth” after the luxury goods tycoon described him as a “pseudo-academic” who wanted to “destroy the French economy”.

With France under pressure to erode its growing debt pile and budget deficit, French economist Gabriel Zucman, 38, has suggested that the ultra-rich pay at least a 2% tax on their fortune.

The idea has been enthusiastically taken up by the French left, including the Socialist Party, whose support new Prime Minister Sebastien Lecornu could need to ensure the survival of his Government.

It has been denounced by the right, who fear that such a scheme would drive the wealthy to flee France.

“This is clearly not a technical or economic debate, but rather a clearly stated desire to destroy the French economy,” said Arnault in a statement to the Sunday Times.

Arnault, 76, whose family fortune is currently estimated at US$157 billion ($268b) by Forbes, described Zucman as “first and foremost a far-left activist ... who puts at the service of his ideology ... a pseudo-academic competence that is itself widely debated”.

Arnault, whose LVMH conglomerate includes brands such as Louis Vuitton, Dior, and Moet Hennessy, has long trumpeted the importance of the taxes he pays personally and that his companies pay to the French state.

But the tax, according to Zucman, could raise around €20b ($40b) per year from just 1800 households.

“We can have fundamental disagreements, and Arnault is entitled, like all citizens, to his opinions. But this debate must take place with respect for the truth and the facts,” Zucman said in an emailed statement to AFP.

‘The rise of Trumpism’

Zucman, who has held academic posts in London, the United States and Paris, said: “Mr Arnault is wrong to question my professional qualifications by referring to me as having ‘pseudo-academic competence’”.

He compared such statements to the language used by US President Donald Trump and his allies in the US where concern is growing over academic freedoms.

“With the rise of Trumpism, I have seen this rhetoric flourish, denigrating knowledge and research in the US,” warned Zucman.

Zucman said earlier on X that he had never been an activist in any movement nor a member of any party.

He also received support from left-wing leaders who expressed shock at Arnault’s comments.

Socialist leader Olivier Faure wrote on X: “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”.

Greens leader Marine Tondelier said: “We’re close to the goal and he’s getting nervous. To be fair, he has a big conflict of interest when he speaks on the subject.”

Bestselling French economist Thomas Piketty, seen as Zucman’s mentor, also stood up for his former student, accusing Arnault of “talking nonsense” and rubbishing the suggestion that the tax would “bring the French economy to its knees”.

– Agence France-Presse