France's PM favors channeling large inheritances into investment

French Prime Minister Sébastien Lecornu has expressed support for a proposal to channel large inheritances into investment funds, presenting it as a potential alternative to the controversial Zucman tax. The idea, discussed at the Aix-en-Provence economic meetings, aims to address a "deep sense of inequality in wealth distribution," according to Lecornu. He suggested that "transmissions of large capital" could be directed to "feed" investment funds crucial for the country's sovereignty. This concept draws inspiration from Nobel laureate in economics Philippe Aghion, who was also present. Aghion had previously proposed a form of "forced patronage" for wealthy households upon succession, directing funds towards public interest foundations in education, research, or climate initiatives. Families refusing this "somewhat forced patronage" would face significantly higher inheritance taxes. Lecornu responded to Aghion's idea with a decisive "Chiche" (Challenge accepted), indicating that the proposal could be considered for the upcoming budget debate by the end of the year. He framed the measure as a "win-win" situation, noting that an additional 6 billion euros are needed for national defense in the coming year. The government is reportedly working on formalizing this measure for inclusion in the finance bill to be presented in October. Details on the exact form of this "forced patronage" on large inheritances have not yet been disclosed by the Prime Minister.

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This affair of Zucman revealed that there was a deep sense of inequality in the distribution of wealth.