Oxfam calls for taxing 'super-inheritances' to combat inequality in France
The NGO Oxfam has just published a report highlighting the urgent need to reform inheritance tax in France, at a time when the country is about to experience a "great wealth transfer". According to Oxfam, this period, marked by the transfer of fortunes accumulated by generations of baby boomers, represents a crucial opportunity to reduce deficits and growing inequalities.
The report highlights that 0,1% of heirs receive an average of €13 million each, or 180 times the median inheritance, but pay only 10% in inheritance tax, well below the 45% marginal rate. Meanwhile, almost half the population receives only a modest inheritance, if any at all.
A considerable loss of earnings
Oxfam estimates that France could lose up to €160 billion in tax revenue if inheritance tax remains unchanged. More than €460 billion could be passed on over the next thirty years by 25 French billionaires over the age of 70. Currently, these super-heirs largely avoid paying tax by taking advantage of tax loopholes, such as the Dutreil Pact and exemptions on life insurance.
Cécile Duflot, general director of Oxfam France, stresses that the debate on inheritance tax has become essential in the context of an increasingly tight budget policy. "If you are the son of Bernard Arnault, you will pay less inheritance tax proportionally than a person who inherits 15 euros from his godmother," she explains.
Concrete proposals
To address this situation, Oxfam is proposing several measures:
- Reform tax loopholes and exemptions considered “useless”.
- Establish a single, progressive tax scale which does not take into account family ties.
- Produce clear data on inheritance taxation to better inform the public and policy makers.
Despite recommendations and calls for action, the subject remains sensitive in the French political landscape. Historically, reform proposals have been discussed but not implemented, such as the increase in the tax allowance on direct line inheritances from €100 to €000, suggested by Emmanuel Macron during the 150 presidential campaign.
A difficult consensus to achieve
The issue of inheritance tax continues to divide opinion. While the majority of French people do not pay inheritance tax, Oxfam insists on the need for reform to tackle inequality. “This is not a Bolivarian revolution, it is a question of tax justice,” concludes Duflot, hoping that recent political changes will give new impetus to the debate on the taxation of super-heirs.
