France Proposes Global Billionaire Wealth Tax At UN Summit Amid US-UK Opposition

France’s Bold Play at the UN: A Global Tax on Billionaires—And Why the US and UK Are Pushing Back

Picture this: world leaders at a UN summit, locked in a high-stakes debate over… taxes. Sounds about as thrilling as watching paint dry, right? But hold that thought. This isn’t your average snooze-fest about corporate loopholes or sales tax rates. France just dropped a political grenade on the floor by proposing a global wealth tax targeting the world’s billionaires—and the US and UK are scrambling to stamp it out.

Let’s unpack why this idea has everyone from Wall Street to Westminster either cheering or sweating through their tailored suits.

The French Proposal: “Tax the Ultra-Rich or Bust”

France’s President Emmanuel Macron, never one to shy away from a fiery economic debate, took the UN podium with a clear message: it’s time for billionaires to pay up—globally. The proposal? A 2% annual levy on the wealth of individuals with assets over $1 billion, escalating to 3% for those above $10 billion. The pitch is simple (in theory): harness the eye-watering fortunes of the world’s 3,000-odd billionaires to fund climate action, healthcare, and poverty alleviation worldwide.

Macron’s argument hinges on a jarring statistic: the world’s billionaires saw their wealth surge by $3.3 trillion during the pandemic, while 95 million people sank into extreme poverty. “We cannot preach solidarity while allowing the richest to opt out of it,” he argued, flanked by leaders from Germany, South Africa, and Brazil. The tax, proponents claim, could raise $250 billion annually—enough to cover the UN’s entire budget for sustainable development goals six times over.

But here’s the catch: getting every country on board. Spoiler alert—that’s not happening.

The US and UK: “Thanks, But No Thanks”

Enter the opposition. The US and UK, home to roughly 40% of the world’s billionaires, immediately slammed the proposal as “unworkable” and “economically risky.” US Treasury Secretary Janet Yellen called it a “well-intentioned misfire,” warning it could stifle investment and innovation. Translation: don’t scare off our tech tycoons and Wall Street moguls.

The UK’s response was equally icy. A spokesperson for Prime Minister Rishi Sunak—himself a former hedge fund manager—quipped, “We believe in competitive tax systems that attract talent, not alienate it.” (Read: London’s financial district is already jittery post-Brexit; this would be gasoline on the fire.) Critics argue that without universal adoption, billionaires would simply relocate assets or renounce citizenship to dodge the tax—a race to the bottom that could leave poorer nations holding the bag.

But is this just rich countries protecting their golden geese? Critics of the US-UK stance think so. “It’s ironic to hear ‘global cooperation’ preached by nations that host the most offshore tax havens,” retorted Gabriel Zucman, a French economist advising Macron.

Who’s Team Tax—And Who’s Sitting This One Out?

France isn’t flying solo. The proposal has rallied support from Germany, Spain, Argentina, and the African Union, who argue that extreme wealth concentration undermines social stability. Germany’s Finance Minister, Christian Lindner, put it bluntly: “We’ve taxed workers for centuries. It’s time the ultra-wealthy contribute their fair share.”

Even the Vatican chimed in, with Pope Francis endorsing the tax as a “moral imperative.” (Because nothing says “holy accountability” like asking billionaires to chip in for the common good.)

But the real surprise? Some billionaires are on board. Abigail Disney, heiress to the Disney empire, tweeted, “I’ve got more money than I could spend in ten lifetimes. Taxing me isn’t radical—it’s rational.” (Cue shocked gasps from Elon Musk’s Twitter feed.)

Still, the silent majority of the ultra-rich are… well, silent. Most haven’t commented, though their armies of lawyers and accountants are likely already gaming out loopholes.

The Heart of the Debate: Fairness vs. Feasibility

Let’s cut through the noise. The fight over this tax boils down to two questions: Is it fair? And can it actually work?

On fairness: The world’s 10 richest men own more wealth than the poorest 40% of humanity. Meanwhile, global corporate tax rates have plummeted from 49% in 1985 to 24% today. Macron’s camp argues that billionaires—who often pay lower effective tax rates than teachers or nurses—owe a debt to the societies that enabled their success.

But feasibility is a thornier issue. Enforcing a global tax requires unprecedented cooperation. Even the recent OECD deal for a 15% corporate minimum tax faced hurdles, with holdouts like Hungary and Ireland. A wealth tax would need buy-in from every major economy—including tax havens like Switzerland and Singapore. Without it, billionaires could simply shift assets to “friendlier” jurisdictions.

“This isn’t 1789 France,” groaned one Wall Street analyst. “You can’t just guillotine the rich into compliance.”

Lessons From History: When Wealth Taxes Go Right… And Very Wrong

We’ve been here before. Twelve European countries had wealth taxes in the 1990s; only three (Norway, Spain, and Switzerland) still do. France itself scrapped its wealth tax in 2017 after it triggered an exodus of high-net-worth individuals. Critics say the policy backfired, costing the government more in lost revenue than it gained.

But proponents point to success stories. Norway’s 0.85% wealth tax (on assets over $170,000) funds its legendary welfare state without driving out the rich. Spain’s tax, while controversial, has survived multiple governments. The key difference? Global coordination. If every country taxes wealth, there’s nowhere to hide.

Yet that “if” is doing a lot of heavy lifting.

What’s Next? Spoiler: Don’t Hold Your Breath

Let’s be real: this tax isn’t happening tomorrow—or likely ever. The US and UK’s opposition alone could sink it, given their outsize influence in global finance. But Macron’s move isn’t really about immediate implementation. It’s about shifting the Overton window—making radical ideas seem possible.

Already, the proposal has reignited debates about wealth inequality that were once confined to academic journals and Occupy Wall Street rallies. Brazil’s President Lula da Silva, fresh off taxing offshore fortunes to fund poverty programs, declared, “The world is watching. Either we tax the billionaires, or the billionaires tax us.”

Meanwhile, activists are seizing the momentum. The “Tax the Ultra-Rich” campaign, backed by celebrities like Mark Ruffalo and Billie Eilish, has gone viral, with protests planned outside the UN this fall.

The Bottom Line: A New Front in the Global Class War

Whether this tax lives or dies, one thing’s clear: the battle lines over wealth inequality are hardening. The pandemic turbocharged the fortunes of tech titans and oligarchs while leaving ordinary workers grappling with inflation and stagnant wages. Voters are fed up—and politicians are taking notice.

For Macron, this is a legacy play. After facing riots over pension reforms and a cost-of-living crisis, he’s betting that positioning France as the Robin Hood of nations could salvage his tanking approval ratings. For Sunak and Biden, it’s a tightrope walk: how to appease a restless public demanding fairness without alienating the donor class that bankrolls their campaigns.

So, will the world’s billionaires soon be writing checks to the UN? Probably not. But the fact that this idea is even on the table tells us something: the era of automatic deference to the ultra-wealthy is over. And that’s a plot twist worth watching.