Nobel Economists Push for 2% Global Wealth Tax on Billionaires

The signatories—including Joseph Stiglitz, Paul Krugman, and Esther Duflo—argue that the world’s wealthiest individuals, such as Bernard Arnault and Elon Musk, pay effective tax rates far below those of average citizens. Research from the E.U. Tax Observatory indicates that ultra-wealthy taxpayers often pay between 0% and 0.6% of their wealth in income tax, largely because they can structure their finances to bypass traditional tax codes.

The Path Toward Global Reform

The economists advocate for a shift from taxing income to taxing total wealth, a strategy designed to neutralize aggressive tax optimization. This proposal, often referred to as the 'Zucman tax,' gained traction in June 2024 through a report by Gabriel Zucman for the G20. While the French National Assembly recently backed a 2% minimum wealth tax on fortunes exceeding €100 million, the measure faced a setback in the Senate. The laureates urged the French government to bypass international delays and lead by example, suggesting that extending tax obligations for expatriates to 10 years would effectively mitigate the risk of tax flight.