French Labor Minister Proposes Tax on Affluent Retirees for Social Protection Funding
Astrid Panosyan-Bouvet suggests taxation on wealthier retirees to support social welfare, amidst ongoing discussions on fiscal policies in France.
In a recent television interview on TF1, French Labor Minister Astrid Panosyan-Bouvet proposed the idea of imposing taxes on wealthier retirees as part of a broader effort to finance social protection initiatives.
This proposal comes amidst dialogues on fiscal sustainability, particularly measures aimed at alleviating the financial burden on companies and workers.
According to Minister Panosyan-Bouvet, the current system disproportionately burdens businesses and employed individuals with the responsibility of social protection funding.
She suggested that retirees with sufficient financial resources could also contribute, indicating that this measure might affect around 40% of the retiree population, targeting those whose pensions exceed thresholds like €2,000 or €2,500 monthly.
The proposition, which Panosyan-Bouvet described as her 'personal position,' emphasizes the need for equitable distribution of financial responsibilities among the populace, especially in addressing issues such as elder dependency and autonomy loss.
In response, Medef President Patrick Martin expressed a conditional openness to the idea, suggesting that such measures could be applied temporarily and in a targeted manner, taking care to protect smaller pensions.
Martin highlighted the interconnectedness of the pension system, where current employees and companies finance retirements.
The discussions also examined other potential fiscal strategies, including extending an extra seven hours of unpaid work annually for all active workers, a measure previously considered but abandoned under former administrations.
This proposal, reportedly capable of generating around €2 billion, is seen as a potential means to curb the burgeoning deficit of France’s social security accounts.
However, the suggestions have faced criticism.
Deputy Mathieu Lefèvre labeled these measures as 'anti-work' and stressed the importance of rewarding labor, while Minister for Equality, Aurore Bergé, supported Panosyan-Bouvet’s initiative to explore a shared societal effort amid fiscal challenges.
The ongoing debate reflects France's attempt to navigate complex social welfare funding mechanisms while seeking solutions that distribute economic responsibilities equitably across its demographic segments.
This proposal comes amidst dialogues on fiscal sustainability, particularly measures aimed at alleviating the financial burden on companies and workers.
According to Minister Panosyan-Bouvet, the current system disproportionately burdens businesses and employed individuals with the responsibility of social protection funding.
She suggested that retirees with sufficient financial resources could also contribute, indicating that this measure might affect around 40% of the retiree population, targeting those whose pensions exceed thresholds like €2,000 or €2,500 monthly.
The proposition, which Panosyan-Bouvet described as her 'personal position,' emphasizes the need for equitable distribution of financial responsibilities among the populace, especially in addressing issues such as elder dependency and autonomy loss.
In response, Medef President Patrick Martin expressed a conditional openness to the idea, suggesting that such measures could be applied temporarily and in a targeted manner, taking care to protect smaller pensions.
Martin highlighted the interconnectedness of the pension system, where current employees and companies finance retirements.
The discussions also examined other potential fiscal strategies, including extending an extra seven hours of unpaid work annually for all active workers, a measure previously considered but abandoned under former administrations.
This proposal, reportedly capable of generating around €2 billion, is seen as a potential means to curb the burgeoning deficit of France’s social security accounts.
However, the suggestions have faced criticism.
Deputy Mathieu Lefèvre labeled these measures as 'anti-work' and stressed the importance of rewarding labor, while Minister for Equality, Aurore Bergé, supported Panosyan-Bouvet’s initiative to explore a shared societal effort amid fiscal challenges.
The ongoing debate reflects France's attempt to navigate complex social welfare funding mechanisms while seeking solutions that distribute economic responsibilities equitably across its demographic segments.
