The employer organization U2P (local companies) presented on Tuesday a “big bang” project to improve net labor income, by removing the CSG-CRDS and by finding recipes on the side of pensions, annuities, inheritance and VAT.
The U2P observes that “for the majority of people, working no longer improves its standard of living”, with an annual increase in purchasing power that slows down, while net salary only represents 54 % of gross salary, compared to 60 % in 1990 and 69 % in 1970.
The U2P proposes to “better distribute the financing of the social protection model between the French”. The modification of the financing of social protection, without however weakening the amount, is a subject shared by all employers, with different suggestions.
Total deletion of certain contributions
The president of the U2P Michel Picon presented to the press a bill aimed at completely eliminating the CSG (general social contribution, one of the main taxes of individuals in France) and the CRDS (contribution for the reimbursement of social debt) on all activity income, in five years. A “pragmatic” choice according to the organization, all workers paying the same CSG CRDS at 9.7 %.
This would result in a revaluation of 116 billion euros in income from these assets, including civil servants, independent, liberals and business leaders.
According to the U2P, this, combined with the increase in labor income to the rate of the past fifteen years, would represent a 22 % increase in net remuneration in five years, for 28 million workers.
To compensate for the measure, the employers’ organization recommends to the political power to request four different sources of revenue, according to a weighting to be defined.
-The financial and real estate annuity first. The U2P proposes to “reassemble a few points” the unique flat -rate levy at 30 % on financial income, and “a few CSG points” property income, while establishing an income tax floor for people with property income.
She also suggests freezing pensions for three to five years greater than 2,300 euros net, while removing the 10 % income tax allowance from which they benefit.
It recommends the establishment of a minimum rights floor from 10 % to 20 % for inheritances exceeding 500,000 euros per heir.
“Possible to find these 100 billion”
Finally, it suggests revising a revision of VAT rates, with “a moderate increase in a few points” of the general VAT, allowing more products to pass at the reduced rate, and a “high increase” for luxury products.
For Michel Picon, it is “possible to find these 100 billion with these four tools without anyone suffering”. It is largely inspired by the test “getting out of work that no longer pays” (Aube – 2024) by Antoine Foucher, present at the Tuesday conference.
“The devaluation of work, and therefore of merit, in society, is the mother of all battles, and the sooner we (rule) this subject, the sooner we will straighten France,” said the specialist in social issues to AFP.
“The fight of ideas is advancing, then there will be political fight,” he notes. Changes by bill would take “years”, according to him, but “we could also do this next year, provided you organize a great debate of several months, which would be concluded with a referendum for which everyone would be concerned and would be interested in the subject”.
