Amid an ongoing budget debate in French Parliament, new data is likely to reignite discussion about what is arguably the most sensitive issue of all: taxing the ultrarich. In a report published on Tuesday, November 18, France’s National Institute of Statistics and Economic Studies (INSEE) revealed just how much the incomes of this tiny fraction of the population have soared over the past two decades. The gap with the rest of the French population has become a gaping chasm, and taxation has not corrected this trend – quite the opposite. It is a politically explosive issue in France, the only country in the world whose national motto includes the word “equality.”

For its analysis, based on tax records, INSEE focused on the 0.1% of French people who declared the highest incomes – about 40,700 households in 2022. This is a very wealthy, small group, half of whom live in the Paris region, mainly in Paris and Hauts-de-Seine. They are also somewhat older than the rest of taxpayers: The average age of the main filer is 56.

To join this exclusive club, one had to declare at least €463,000 in 2022, the year on which the study is based. The average income for these households stood at €1 million per year. Half of this money came from dividends and other income from financial assets, while only 38% came from salaries, wages and pensions.

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This group includes business leaders, various heirs, senior executives, lawyers, models, artists and athletes. Among the highest-paid private-sector employees in 2023, INSEE counted 36 professional athletes, mostly Ligue 1 football players. Another notable difference compared to the rest of the population is that these ultrarich individuals are married or in a civil union (pacsés) 82% of the time, while this is true for only 32% of other households.

Tax changes

What stands out in the study is the staggering surge in income among the ultrarich in recent decades. Between 2003 and 2022, their average income more than doubled in nominal terms (+119%). This increase far outpaced inflation, and was “2.6 times greater than for other households (+46%),” the institute noted.

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