The issue of wealth inequality has taken center stage in France, particularly regarding the taxation of ultrarich individuals. A recent report from the National Institute of Statistics and Economic Studies (Insee), published on November 18, highlights the vast disparity in income between the wealthiest 0.1% of the French population and the rest of society.
Ultrarich Incomes Surge: Key Findings
In 2022, the ultrarich segment, which consists of approximately 40,700 households, reported substantial financial gains. Their average income reached €1 million annually, a stark increase fueled mainly by dividends and financial asset income. This group is predominantly based in the Île-de-France region, with a significant concentration in Paris and Hauts-de-Seine.
Demographics of the Ultrarich
- Households: 40,700 in France
- Average Age of Primary Earner: 56 years
- Minimum Income Required: €463,000 in 2022
- Income Sources:
- 50% from dividends and other asset revenues
- 38% from salaries and pensions
- Marital Status: 82% are married or in civil partnerships
Income Growth Outpaces Inflation
The report reveals a staggering growth in the incomes of this elite group. From 2003 to 2022, their average revenue more than doubled, rising by 119%. This increase significantly outstripped inflation and was 2.6 times greater than the income growth for other tax households, which was only 46% during the same period.
Profile of the Wealthy
Among this wealthy class are various professions, including business leaders, heirs, senior executives, lawyers, models, artists, and athletes. Notably, of the 100 highest-paid employees in the private sector in 2023, 36 are professional athletes, primarily from Ligue 1 football.
The report’s findings point to an urgent need for policy discussion regarding wealth inequality and taxation practices in France, where the concept of “equality” is intrinsic to its national identity. As budget debates unfold in Parliament, the implications of these figures will likely spark further debate among policymakers and the public.
