LVMH Chairman Strongly Rebukes Economist's Wealth Tax Proposal

"Wealth Tax Is a Threat to the Liberal Economy"

Bernard Arnault, Chairman of Louis Vuitton Moet Hennessy (LVMH) and Europe’s wealthiest individual, has strongly opposed a proposal by a prominent economist to introduce a "wealth tax" for the sake of France’s fiscal soundness.

According to The Guardian and other British media outlets on September 21 (local time), Chairman Arnault criticized the wealth tax proposal by Gabriel Zucman, Professor of Economics at the ?cole Normale Sup?rieure (ENS) in Paris, in a statement sent to The Sunday Times. Arnault stated, "This is an attempt to destroy the only economic system that works for everyone’s benefit, which is the liberal economy."

Bernard Arnault, Chairman of LVMH. Photo by AP Yonhap News

Professor Zucman proposed an "ultra-wealth tax" that would impose a 2% tax on the portion of wealth exceeding 100 million euros (approximately 163.4 billion won) for the ultra-wealthy. This proposal, nicknamed the "Zucman tax," could allow the French government to collect 20 billion euros in taxes annually from 1,800 households. As the French government is pursuing budget cuts to address a fiscal deficit of 44 billion euros, the wealth tax is gaining support, particularly among left-wing parties such as the Socialist Party.

Chairman Arnault argued that the wealth tax would be "an aggressive act that could be fatal to our economy." He also emphasized that he is the individual taxpayer who pays the most taxes in France, and that he is among the top professional taxpayers through the companies he operates.

Arnault further criticized Professor Zucman, referring to him as a "far-left activist" and accusing him of using "pseudo-academic credentials" to spread an ideology aimed at dismantling the free-market economic system.

According to Bloomberg, as of September 19, Chairman Arnault’s wealth amounted to 196 billion dollars (approximately 273 trillion won).

On the same day, Professor Zucman responded to Arnault’s criticism by posting on the social media platform X (formerly Twitter), stating, "I have never acted as an activist for any movement or political party," and emphasized that his achievements are based on research, not ideology.

He also sent a statement to AFP via email, saying, "There can be fundamental disagreements, and Arnault, like any citizen, has the right to his opinion. However, this debate must be conducted with respect for truth and facts."