Economist Gabriel Zucman is behind a proposed 2% tax on households whose wealth exceeds €100 million. The proposal will be central to upcoming discussions between French Prime Minister Sébastien Lecornu and the Socialists, whose support the new premier is seeking. In an interview with Le Monde, Zucman refuted objections to his tax proposal.

Politically, ignoring the minimum tax while trying to win favor with the Socialists is no longer tenable. The new prime minister will therefore have to address the issue – unless they decide to govern firmly to the right, in a coalition stretching from Ensemble [Ensemble pour la République, President Emmanuel Macron's group in the Assemblée Nationale] to the Rassemblement National [RN, far-right]. Ultimately, I am optimistic, for a very simple reason: The tax is popular across all electorates. Everyone now understands the issue. Billionaires, taking into account all mandatory levies, pay half as much in taxes as the average French citizen. This is because their income, housed in holding companies, escapes the income tax.

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