French prime minister, Jean-Marc Ayrault, decided not to impose a wealth tax on works of art after a massive backlash that involved the country’s leading museums, including the Louvre. The tax, which was proposed by President Francois Hollande as part of his 2013 budget plan, was to be enforced on works worth upward of $65,545 (50,000 euros) in an effort to reduce France’s deficit. Museum leaders became particularly incensed after budget minister, Jerome Cahuzac, championed the tax.
The heads of France’s seven largest museums banded together and sent an angry to the culture ministry stating that the tax would harm their collections as owners would be dissuaded from lending their privately-owned works in an attempt to hide their identities. Additionally, the tax could scare off potential art collectors, weakening the overall market.
In light of the harsh criticism, Ayrault stated that the wealth tax would not be approved although it had already been passed by the Assemblee Nationale’s finance committee.
