The president of Medef, Patrick Martin, denounced, on Saturday, November 16, in The Parisian TO “recessive budget” and advocated the creation of a “Social VAT”warning that with planned tax increases, French companies risk hiring fewer and cutting jobs.
“If we add the 4,000 million euros of reduction in burden reductions, the 2,500 million euros transferred from health insurance to complementary medical insurance – and, therefore, to companies –, the 1,500 million euros of savings in aid to the learning, that adds up to 8 billion euros in labor costs. Which corresponds to the average annual gross salary of 300,000 employees.”estimates the leader of the first French employers’ organization.
“If companies no longer have this money, they will inevitably hire less, cut jobs if necessary and will not be able to increase wages as much as they would like.”warns.
Comparing the “tax surcharge” about large companies in France “the reduction to 20% of the corporate tax rate” announced by US President-elect Donald Trump, Medef boss believes “the gap (…) will go even deeper with the United States ».
“Balance of efforts”
“We have to choose between tax increases and job creation. “As written, this budget is recessionary.”said Patrick Martin in a speech that contrasts with the position adopted until then on the budget, according to which companies were prepared “contribute to the war effort”.
“The government had promised a balance of efforts: one third coming from taxpayers, including companies, and two thirds from a reduction in structural State spending. In fact, the opposite is true in the current project. (…) Therefore, the conditions are not met.”justify.
Rather, it advocates a “Social VAT” : “why not think about reducing contributions on salaries and increasing VAT by one point, except, of course, on essential products”. “This would contribute about 10 billion euros to the State and would have the merit of reducing labor costs and increasing the net salary of all employees. Furthermore, VAT is applied to imports but not exports. What promotes French competitiveness »Patrick Martin also says.
Centrist senators, a major force in the Senate majority, last week proposed increasing VAT and working hours in budget debates. “To rebalance the effort”Patrick Martin also suggests “make another arbitration between retirees and active workers”believing that “Parliament lacked political courage” on the indexation of pensions to inflation.
