Proposed Increase in Salaries by Employer Group
Hear this, mate!
It's no secret that many folk in France have found their net income troublesome, with the gap between gross and net salary growing like a bloomin' weed. A group called U2P (Union des Entreprises de Proximité) has come up with a shock plan to fix this and set the dreams of many on fire - they're proposing to narrow the gap between gross and net salary to boost purchasing power for the French.
To make this happen, they're tossing around the idea of scrapping the CSG (general social contribution) and CRDS (contribution for the repayment of social debt) on all activity revenues over a five-year period. If this pirouette pans out, it's projected to give a financial boost to everyone who's working - from you-and-me freelancers to fancypants bigwigs - by a sweet 116 billion euros, as claimed by BFMTV.
Now, consider this: back in the 1970s, the net salary was practically the same as the gross - a ratio of 69%. But over the years, it's dwindled, shrinking to 54%. That means an employee making 1,000 euros bucks gross can only pocket 540 euros net.
But how are they gonna pay for this dream? The U2P ain't short of ideas: they're thinking hard about hiking the PFU (unique flat-rate withholding tax) or wringing more cash from social security contributions on rental income. Not done yet, they've also got their eyes on the top-tier pensioners. The U2P wants to freeze their automatic increases for a few years and torpedo the 10% tax break they've been enjoying. Lastly, they're considering nudging up the standard VAT and whacking a big one on luxury items, as much as 35%.
If you're earning more than the average Joe Sixpack in France, the U2P's got some good news for you. This radical move could mean more dough in your wallet - and who wouldn't want that?
If the U2P's plan is implemented, it could potentially provide more funds for scholarships, as the increased financial boost might enable more individuals to pursue higher education in business and other fields. Additionally, with the increased purchasing power, more businesses might see an influx of customers, which could stimulate the economy in France.
