It is clear that the millionaire tax does not drive many wealthy people out, but this says little about the extent of capital flight.

What about the French millionaire tax?

We connect with economic historian Eric Buist (University of Leuven), who explains how the French millionaire tax came about: “When François Mitterrand became president in 1981, France took a sharp turn to the left and the wealth tax was expanded dramatically. This was accompanied by a massive capital flight. “, along with a number of other measures taken by the Mitterrand government, such as increasing the minimum wage and reducing working hours, put pressure on the exchange rate of the French franc, forcing it to devalue several times.”

According to Buist, the negative effects of his policy forced Mitterrand to adopt a different policy. “The communists of the French Communist Party were thrown at the door, and a major restructuring took place,” Buist says. However, the wealth tax has not been amended. Except for a short period of absence between 1986 and 1989 – when he was in France as a right-wing prime minister – he remained a major player in politics. Mertens and Hidebo are therefore not referring to the imposition of a wealth tax in France, but rather to… Haintroduction.”

“It was President Emmanuel Macron’s government that reformed the tax into a property tax in 2018,” Buist says. “Despite capital flight, the French wealth tax has remained in place for decades.”

In 2012, Socialist presidential candidate Hollande indicated his desire to impose an additional 75% “rich tax” on the highest earners. After being passed by the French Council of State, a 50% tax was finally imposed in March 2013. The measure was halted in 2015 after revenues were found to be lower than expected. We read that the morning.