The organization of the U2P employer (local companies) presented a “Big Bang” project on Tuesday to improve net labor income, eliminate CSG-CRD and find recipes next to pensions, annuities, inheritance and VAT.
The U2P observes that “for most people, working no longer improves their standard of living”, with an annual increase in the purchasing power that decreases, while the net salary represents only 54% of the gross salary, compared to 60% in 1990 and 69% in 1970.
Therefore, the U2P proposes to “distribute better the financing of the social protection model among the French.”
Its President Michel Picon presented to the press a bill aimed at completely eliminating the CSG (general social contribution, one of the main taxes of people in France) and the CRD (contribution to the reimbursement of social debt) on all income of activities, in five years.
A “pragmatic” option according to the organization, all workers who pay the same CSG CRD at 9.7%.
22% increase in net remuneration in five years
This would result in a revaluation of 116 billion euros in revenues of these assets, including public, independent, liberal and business leaders.
According to the U2P, this, combined with the increase in labor income at the rate of the last fifteen years, would represent a 22% increase in net remuneration in five years, for 28 million workers.
To compensate for this measure, the organization of employers recommends to the political power to request four different sources of income, according to a weighting to define.
Financial and real estate annuity first. The U2P proposes to “re -assemble some points” the unique global sum in 30% in financial income, and income for rent of “some CSG points”, while establishing an income tax floor for people with real estate income.
It also suggests freezing for three to five years pensions greater than 2,500 euros, while eliminating the 10% reduction from which they benefit.
It proposes to establish a minimum rights floor from 10% to 20% for the inheritance that exceed 500,000 euros per heir, by making the “Dutreil Pact” parallel to commercial transmissions: the exemption of the inheritance tax would decrease from 75% to 90%, if the heirs are dedicated to maintaining the company, not two, but ten years.
Finally, it suggests reviewing a review of VAT rates, with “a moderate increase of a few points” of the general VAT, which allows more products to be passed to the reduced rate, and a strong increase, up to 35%, for luxury products.
Source: BFM TV
