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Observatoire Report Sets a Measurable 'Wealth' Threshold and Reopens France’s Tax Debate

The study establishes after-tax income and patrimony cutoffs to challenge official measurement, prompting policy choices on taxation and inheritance.

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Pour l’économiste Thomas Piketty, « les 5 000 € vers lesquels on propose de converger ne peuvent pas correspondre aux mêmes 5 000 € qu’on connaît aujourd’hui » et impliquent un changement de mode de vie.
"Si je voulais partir, par exemple, en Polynésie, ça me pose un problème" : à partir de quel revenu est-on considéré comme riche en France ?
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Overview

  • The Observatoire des inégalités published its fourth report on Tuesday that defines someone as 'rich' when their after-tax monthly 'niveau de vie' exceeds twice the median, identifying about 4.8 million people or roughly 7.5% of the population.
  • The report gives concrete thresholds, for example €4,292 per month for a single person and a patrimony cutoff around €820,400, and it finds the 'rich' are concentrated among senior professionals, older age groups and the Paris region.
  • While the number of people meeting the report’s income threshold fell since 2010, the top fortunes have grown sharply, with the total of the 500 largest fortunes multiplying roughly 6.6 times over two decades.
  • The authors warn that nearly €9,000 billion will transfer between generations by 2040, a flow the report says could entrench inequality and that raises specific questions about inheritance rules and targeting of fiscal measures.
  • The report has provoked immediate debate with INSEE and other statisticians over whether a formal 'seuil de richesse' is appropriate, and those domestic discussions have been broadened by a June 4 global proposal from Thomas Piketty’s group calling for ambitious international fiscal mechanisms.