Wealth Tax Proposal Exposes ‘Two Injustices’ in Belgian Politics
A proposal to tax Belgium’s wealthiest citizens has erupted into a full-blown political crisis, pitting coalition partners against each other and exposing deep divisions over who should bear the burden of the country’s massive budget deficit. At the heart of the controversy, experts say, lie not one but “two injustices” — one embedded in the proposal itself, and another in the fierce reactions against it.
The Proposal at a Glance
Yvan Verougstraete, president of the centrist party Les Engagés, proposed the wealth tax during a televised interview on June 21, as reported by RTL Info. The plan targets financial assets exceeding €500,000 with progressive rates ranging from 0.15% to 0.60%, affecting only the wealthiest 5% of Belgians. Someone with €1 million in financial assets would pay approximately €750 per year. The goal: raise €1–2 billion annually to help close a budget deficit projected at €26 billion.
“We asked efforts from job seekers, we asked efforts from teachers, we asked efforts from pensioners, and we will also ask efforts from those who today have the deepest pockets,” Verougstraete said in announcing the measure.
Coalition Partners at War
The proposal has triggered an immediate and forceful backlash from Les Engagés’ coalition partner, the liberal MR party. Georges-Louis Bouchez, president of the MR, described the plan as a “rage taxatoire” (tax rage), “more radical than the communists,” and “economic madness,” according to RTBF.
The clash is particularly significant because Les Engagés and MR are not only coalition partners in the federal “Arizona” government — alongside N-VA, Vooruit, and CD&V — but also direct competitors for the same centrist and center-right electorate. Polls show the two parties neck-and-neck, with Les Engagés increasingly siphoning votes from the MR.
Billionaire Threatens Exit
The most dramatic reaction came from Fabien Pinckaers, founder and CEO of Odoo, a Walloon tech unicorn valued at approximately €10 billion and Belgium’s youngest billionaire. In a LinkedIn post reported by DH Les Sports+, Pinckaers warned: “If this proposal passes, my only option is to leave Belgium.”
Pinckaers argued that the tax would apply to the paper value of his company shares rather than his actual liquid income. Holding just over 50% of Odoo, he estimated his annual tax bill at over €30 million — despite having less than €100,000 in his bank account. He warned that paying such a tax would require selling shares and potentially losing control of his company.
The ‘Two Injustices’ Analysis
Marek Hudon, a professor at the Solvay Brussels School of Economics, offered a more nuanced perspective in an analysis published by La Libre Belgique. Hudon argues that the controversy conceals two distinct injustices.
The first injustice lies in the proposal itself: by targeting only financial assets while excluding real estate wealth, the tax creates an uneven playing field. In a country where property ownership is a primary form of wealth accumulation, this selective approach raises questions of fairness.
The second injustice, according to Hudon, is revealed by the vehement opposition to even this modest tax. Belgium’s tax system already favors capital over labor, and the furious reaction against a relatively small levy on the wealthiest 5% exposes a deeper structural inequality in who bears the tax burden.
Political Calculations and Public Opinion
The political timing is telling. During the 2024 election campaign, Les Engagés proposed a broad tax reform that would have increased net income for workers by €450 per year, funded partly by better taxation of capital. After joining the government, those plans were shelved. Now, with budget negotiations looming, Verougstraete appears to be repositioning his party.
Polls show that the idea of a wealth tax enjoys massive public support, including among voters of right-wing parties, according to RTBF. This creates a complex dynamic: Les Engagés can appeal to popular sentiment while the MR doubles down on anti-tax positioning to retain its liberal base.
What’s Next
The proposal remains just that — a proposal. Whether it becomes part of formal budget negotiations depends on how the Arizona coalition navigates this internal split. With the government seeking €7–14 billion in savings or new revenue, and the program law only recently adopted after months of tensions, the wealth tax debate adds a volatile new element to an already fragile coalition.
For now, Belgium watches as its coalition partners battle over a question that resonates far beyond its borders: in times of fiscal crisis, who should pay?