U2P proposes a "big bang" of 100 billion euros to increase net wages

The U2P observes that "for the majority of people, work no longer allows them to improve their standard of living", with an annual increase in purchasing power slowing down, while net salary now represents only 54% of gross salary, compared to 60% in 1990 and 69% in 1970.

The U2P proposes "better distributing the funding of the social security model among the French population." Changing the funding of social security, without weakening its level, is a topic shared by all employers, with varying suggestions.

U2P President Michel Picon presented to the press a bill aimed at completely eliminating the CSG (general social contribution, one of the main personal taxes in France) and the CRDS (contribution for the repayment of social debt) on all earned income, within five years.

A "pragmatic" choice according to the organization, with all workers paying the same CSG-CRDS at 9,7%.

This would result in a €116 billion increase in the income of these workers, including civil servants, the self-employed, liberal professionals and business leaders.

According to the U2P, this, combined with the increase in earned income over the past fifteen years, would represent a 22% increase in net pay over five years for 28 million workers.

To compensate for the measure, the employers' organization recommends that the political power request four different sources of revenue, according to a weighting to be defined.

Financial and real estate income first. The U2P proposes "increasing by a few points" the single flat-rate deduction to 30% on financial income, and "by a few points of CSG" on property income, while establishing a minimum income tax for those with property income.

It also suggests freezing pensions above 2.300 euros net for three to five years, while removing the 10% income tax reduction they receive.

It recommends the establishment of a minimum tax floor of 10% to 20% for inheritances exceeding 500.000 euros per heir.

Finally, it suggests a revision of VAT rates, with "a moderate increase of a few points" in general VAT, allowing more products to be transferred to the reduced rate, and a "significant increase" for luxury products.

For Mr. Picon, it is "possible to find these 100 billion with these four tools without anyone suffering."

It is largely inspired by the essay "Getting Out of Work That No Longer Pays (L'aube - 2024)" by Antoine Foucher, who was present at Tuesday's conference.

"The devaluation of work, and therefore of merit, in society, is the mother of all battles, and the sooner we resolve this issue, the sooner we will get France back on its feet," the social affairs specialist told AFP.

"The battle of ideas is progressing, then there will be the political battle," he notes.

Amendments through draft legislation would take "years," he said, but "we could also do it next year, provided we organize a major debate lasting several months, which would conclude with a referendum in which everyone would be concerned and interested in the subject."