With a bit of luck, this could serve as a sign of things to come. A proposal from the left-wing Green Party in France has been overwhelmingly backed by MPs in the National Assembly this week, who voted to impose a new wealth tax on the mega-rich.
How would the proposed French wealth tax work?
The proposed policy would introduce a 2% minimum tax rate on individuals with a net worth of €100 million or more. The legal amendment would affect just 1,800 registered households in France, bringing in a huge estimated windfall.
Those who championed the bill believe that this new wealth tax could raise anything between €15 billion to €25 billion, each and every year. The so-called ‘Zucman Tax’, named after the economist who initially came up with the idea, could be a world-first.
Wealth tax faces legislative hurdles
On Thursday, French MPs voted by 116-39 in favour of this measure. The Greens and other left-leaning parties declared it a victory for tax justice. However, it must be noted that this bill still faces an almighty battle to become national law.
That’s because many right-wing parties, including the far-right Rassemblement National (RN), abstained from the vote. When the bill reaches its second reading, and these figures cast their vote, it will likely stop the proposed wealth tax in its tracks.
Even if it were to secure an unlikely victory in Parliament, the policy would still have to be ratified by the Constitutional Council. As reported by Le Monde, they could deem the tax “confiscatory” and strike it down. So the hurdles remain significant.
It’s not exactly a hopeless case, mind…
However, that hasn’t dampened the spirts of those lobbying for the Zucman Tax. They believe this symbolic win shows that the appetite for change and a fairer system is alive and well – and strong support from the public has also boosted their campaign.
Given the way certain billionaires are acting on the world stage, we can perhaps expect this sentiment to gain more momentum…
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