French Voodoo Economics Is Sticking Pins in the Rich

France is having an on-brand month as President Emmanuel Macron and his new prime minister begin the slog of trying to form a government and cobble together a budget. After a call by protesters to “block everything” — including by paying for goods only in cash to starve the payments system — and a national strike over a since-canceled budget plan to scrap two public holidays, the country is locked in passionate debate over the introduction of a new wealth tax. While it’s perhaps one of the few ideas with near-unanimous support, it’s not the kind of invention France needs right now.

The wealth tax in question, devised by 38-year-old celebrity economist Gabriel Zucman and pushed by the left as an anti-Macron rallying cry, would have the virtue of simplicity: A 2% levy on wealth past a threshold of €100 million ($117 million). (If that sounds familiar, it’s because he’s advised US politicians including Elizabeth Warren on similar plans.) Its backers say it would raise €20 billion a year from an estimated 1,800 households, equating to about half the national defense budget and one-quarter of the amount raised by income tax. No wonder it’s insanely popular with the 99.99% who wouldn’t pay it. Even the far-right National Rally is frantically trying to cash in with its own version.