While the announcement of the government’s savings plan raised many questions among French households, the economy minister assured that there would be no increase in taxes. Even more, Bruno Le Maire has just made another proposal aimed at relieving workers by increasing net wages.
On Monday March 25, Bruno Le Maren gave an interview South West. During this exchange, the Economy Minister again put the question of social VAT on the table. Concretely, the minister wants to reduce employer and employee contributions and increase VAT. With such a maneuver, Bruno Le Maire aims to reduce the gap between gross and net pay. ” Those who work can no longer afford it. The difference between their gross and net salary can reach 40 to 50%. Is it normal for those who work to pay systematically for everything and everyone? » he asked himself.
So Bersi’s tenants are proposing a 5-point shift from social contributions to VAT, an initiative that represents 80 billion euros. This measure represents a large net pay increase benefit for workers. But raising the VAT rate will hit families hard, especially the poorest. In fact, this measure will be characterized by an increase in the prices of certain products, especially those that are imported.
And who says that the prices of these products are increasing, which means higher costs associated with consumption. Bruno Le Maire says he is aware of this: “ I do not claim that this is the only solution and can be improved “, he assured. While the minister did not mention other options that the government could turn to, Nicholas Dowse, economic columnist, speculated on the set of BFM that social CSG would be a solid route.
The minister wants to open a debate on the financing of social security
With this system, the net salary increase will be much less significant than the social VAT. On the other hand, according to Nicolas Dawes, a social CSG would be more “fair”, since it represents a tax that is imposed directly on resources such as pensions and work and not on consumption. With his proposal, the Minister of Economy explains that his aim is above all ” A necessary debate for our nation on financing Social Security by stopping the burden primarily on those who work “
