“A Dream-Killing Machine”: French Tech and Startup Founders Rise Against Zucman Wealth Tax Proposal

The French startup ecosystem is in turmoil. A proposal championed by economist Gabriel Zucman to introduce a new wealth tax on professional assets has sparked outrage among tech entrepreneurs, investors, and founders. Critics warn that such a measure would send a disastrous signal to innovation, growth, and global competitiveness in France.

A Tax That Revives Old Wounds

The proposal suggests a minimum 2% tax on fortunes above €100 million, targeting business assets and entrepreneurial wealth. While positioned as a fairness measure, many in the French Tech community see it as a direct threat to job creation, investment, and long-term growth.

Entrepreneurs compare today’s revolt to the 2012 “Pigeons Movement”, when French founders mobilized against a proposed increase in capital gains taxation under the socialist government.

“WhatsApp groups are heating up. The movement is not yet as coordinated as in 2012, but the anger is just as strong,” says Marc Menasé, entrepreneur and founder of investment fund Founders Future, who was already at the forefront of the fight over a decade ago.

A Blow to Innovation and Growth

Opponents argue that the Zucman tax risks dismantling years of progress in making France an attractive hub for innovation. By targeting entrepreneurial fortunes, it could discourage scaling, reduce investment incentives, and push successful founders abroad.

“This is nothing less than a machine built to crush dreams,” one startup leader said, echoing the fears that France’s ability to nurture unicorns and attract international capital is under threat.

Why It Matters for French Tech

• Investment Climate: The proposal could deter private investors and VCs from backing ambitious startups.

• Talent Attraction: France may struggle to retain and attract entrepreneurial talent if founders feel penalized for success.

• Competitiveness: Other European hubs like London, Berlin, and Amsterdam may gain an edge if France becomes less favorable for high-growth companies.

What’s Next?

The debate over the Zucman wealth tax is just beginning, but the intensity of the backlash shows how deeply the measure touches a nerve in the entrepreneurial ecosystem. Whether it evolves into a coordinated movement like the “Pigeons” of 2012 remains to be seen.

For now, one thing is clear: France’s startups are ready to fight for their future.