Philip Mordaunt, author of the book *What is Liberal Democracy and Can We Save It?*, said that France's new tax on unrealized cryptocurrency gains signals economic decline. This statement was made on X on January 27.
"France going down," said Mordaunt.
The post addresses the French Senate's approval of the 2025 budget, which includes an "unproductive wealth" tax on digital assets like Bitcoin. If implemented, this tax would apply annually to unrealized cryptocurrency gains, meaning holders would be taxed on the increased value of their assets even without selling them.
According to Reuters, on October 10, 2024, French Prime Minister Michel Barnier unveiled a draft budget for 2025 aiming to save €60 billion through a combination of spending cuts and tax increases. The plan included temporary tax hikes targeting individuals earning more than €250,000 annually, ensuring a minimum effective tax rate of 20%. Additionally, large corporations with annual revenues exceeding €1 billion will face heavy levies.
As of the end of 2024, the yield spread between French and German 10-year government bonds widened to 90 basis points, marking the highest level since the eurozone crisis 12 years prior. Reuters reports that this increase indicates growing investor concern over France's fiscal policies and economic stability.
Mordaunt is an author and entrepreneur based in London, known for his book *What is Liberal Democracy and Can We Save It?*, as well as his advocacy for free speech, cryptocurrency, and free-market principles.