A report from the Rexecode institute, accessed by Le Figaro, concludes that the wealth tax (IGF) has not boosted French public finances but led to net fiscal losses of 9 billion euros annually. These findings come as political parties propose taxing the assets of the wealthy more heavily to address budgetary issues. The document warns of a national income loss equivalent to 0.5 to 1 percentage point of GDP.
Le Figaro has exclusively accessed a note from the Rexecode institute analyzing the impacts of the wealth tax (IGF), introduced in France decades ago. According to the report, taxing high net worth individuals has not produced net positive revenues for the state. On the contrary, lost fiscal inflows amount to 9 billion euros, compared to only 2 to 5 billion euros collected annually.
This analysis highlights a brain drain and fiscal exodus that have undermined the economy. The national income loss is estimated at 0.5 to 1 percentage point of GDP, a concerning figure for growth. The publication's timing is critical: as 2026 budget debates intensify, several parties are discussing reinstating the solidarity wealth tax (ISF), a Zucman tax, an unproductive wealth tax, or a financial wealth tax. These often popular proposals could worsen the observed effects, per Rexecode.
"Lost fiscal revenues would reach 9 billion euros against collected receipts of 2 to 5 billion depending on the years. The national income loss would be 0.5 to 1 point of GDP," states the note. This bombshell calls for cautious reflection on taxing the rich, without overlooking risks to France's economic attractiveness.
