Home Business purchasing power, the duel of programs between Macron and Le Pen

purchasing power, the duel of programs between Macron and Le Pen


► Marine Le Pen: betting on a reduction in VAT

The many measures of the RN candidate to lower prices will be difficult to implement.

Marine Le Pen has, since this summer, proclaimed “purchasing power candidate”. Since then, she has been firing on all cylinders. This is how it proposes a reduction in VAT on energy products, which would drop from 20% to 5.5%, and a 0% VAT on a basket of 100 basic necessities, which would continue. “as long as inflation (would) 1 point higher than growth”.

A “super-reduced” VAT rate

The rate of VAT being a European competence which requires the unanimity of the Twenty-Seven, any development in this area requires difficult negotiations with European partners. Admittedly, a new directive of April 5 now authorizes two reduced VAT rates: one between 5% and 15%; the other between 0% and 5%. This “super-reduced” rate could apply to certain basic necessities, except that products harmful to the environment would be banned. Difficult, therefore, to integrate fuels or fuel oil!

There are also questions about the effectiveness of the measure. In fact, the wealthiest households will be able to benefit just as much as low-income households from a 0% VAT rate… Moreover, practice shows that the reductions in VAT are not always fully passed on to the selling price.

The risk of unconstitutionality

Marine Le Pen also proposes a renationalisation of motorways (for a 15% reduction in tolls), the abolition of the television license fee (compensated by the privatization of public broadcasting) and that of income tax for those under 30 years (3.6 billion loss of earnings per year).

→ READ. Presidential 2022: Marine Le Pen poses as a herald of purchasing power

By creating a difference in treatment unrelated to income, this last measure should however be rejected by the Constitutional Council, because it is contrary to the principle of equality of all citizens before public charges proclaimed by the Universal Declaration of Human Rights. man and citizen.

Marine Le Pen also proposes to exempt from employers’ charges a 10% increase in employees paid up to three minimum wages (€4,936 gross). Benjamin Sanson, an expert at human resources consultancy Mercer, wonders about the implementation of the proposal: “Will the exemption be permanent? If so, how will it be calculated if a new increase occurs the following year? With a part of the salary loaded, the other not, it risks being a gas factory… ”

→ MAINTENANCE. Marine Le Pen: “The job of teacher is also to enforce authority”

On the youth side, the candidate also offers a work-study check of €8,000 per year (€5,700 for minors), shared equally between the employer and the apprentice. Quite similar to the current work-study aid decided during the health crisis, and which Emmanuel wishes to renew if he is re-elected, this would make it possible to “raise by almost 30% the remuneration of all French apprentices and work-study students”estimates the candidate (i.e. from 230 € to 330 € per month).

Read:  Inflation propelled to a new record in the euro zone

The issue of funding

For civil servants, Marine Le Pen promises teachers a 15% increase in their salary over the five-year term (at an estimated cost of 4 billion euros per year, offset by a drop in “administrative expenses”) and plans for nursing home nurses and caregivers “a 10% increase”. On the social, finally, Marine Le Pen also wants to reindex pensions on inflation this summer, and set the minimum old age at €1,000.

It remains to be seen how to finance these expenses, in a program which, according to the Institut Montaigne, promises the budget a deficit of more than 100 billion euros per year.

→ FILE. Presidential 2022: Macron – Le Pen, compare their programs

► Emmanuel Macron: employment first

The candidate president is essentially counting on the return to work to improve purchasing power.

On purchasing power, Emmanuel Macron can assert his balance sheet, with a gain of 0.9% on average per year during the five-year period which has benefited all, except the 5% of the poorest households who have seen their level health decrease by 0.5 points.

→ ANALYSIS. The return of inflation, a challenge for economic policies

However, these achievements are overshadowed by the galloping inflation of recent months, fueled by rising energy prices. Hence the will of the candidate president to extend as much as necessary the support measures already in place, such as the discount of 18 cents on fuel or the tariff shield on energy.

The return of the food check

Another proposal: the candidate takes out of the boxes the food check project intended for “helping the most vulnerable to feed themselves with organic and local products”which will be implemented “immediately after the election”assured the Minister of Agriculture Julien Denormandie on Sunday April 17 on France 3, even if the technical details are still under discussion.

On the fiscal level, after a five-year term marked by lower taxes, Emmanuel Macron is content this time with the abolition of the television license fee (a gain for households of 3.2 billion).

The purchasing power premium tripled

But it is above all on job creation and on the improvement of labor income that Emmanuel Macron is counting on to boost the purchasing power of households. The purchasing power bonus, known as the “Macron bonus”, exempt from tax and social charges, will not only be extended but tripled, from €1,000 to €3,000 (€6,000 in the event of an profit-sharing). The candidate also wants to condition the payment of dividends to shareholders on the existence of a participation or profit-sharing mechanism for employees.

Read:  Netflix loses subscribers for the first time in ten years

On the salaries themselves, Emmanuel Macron conceded increases for civil servants, to whom he promises, ” before summer “a thaw of the index point blocked since 2016. This increase of 4% would however be accompanied by a reflection on the remuneration of civil servants where he would like to give a place to the “deserves” and at the ” performance “.

→ ANALYSIS. “We will increase their remuneration if…”: Emmanuel Macron wants to pay teachers on merit

Thus for teachers, whose salary would be increased if they agree to “new assignments”. It also promises lower charges for the self-employed (about €550 per year for those who earn the equivalent of the minimum wage). Finally, Emmanuel Macron promised to reindex pensions on inflation“starting this summer” and to set the minimum pension at €1,100.

The reform of the RSA

Regarding social aid, Emmanuel Macron promised to ” to move “ on the individualisation of the disabled adult allowance. Its proposal to condition the RSA to “effective activity”which he claims was “caricatured”, is maintained. According to him, it would be “provide the means for emancipation, training, commitment”in the same logic as the youth engagement contract set up on March 1st.

“Our purchasing power policy is an employment policy, we explain in the presidential entourage. It is by fighting for jobs that we increase purchasing power. An unemployed person at the end of the right or RSA who finds a job, even at the minimum wage, makes a jump in purchasing power. » But it takes time: “It takes a long period of job creation before bringing those who are excluded back into the labor market”concedes his entourage.

Full employment objective

If he is re-elected, Emmanuel Macron aims to achieve full employment – ​​i.e. 5% unemployment – ​​before the end of his next five-year term. While Emmanuel Macron can claim to have seen the unemployment rate drop from 9.5% to 7.4% over the past five years, the question will be whether the implementation of the unemployment insurance reform and the growth of the activity on which it is betting will be sufficient to consolidate this momentum, despite the Ukrainian crisis.

→ FIND Sunday at 8 p.m. the results of the 2nd round of the 2022 presidential election, municipality by municipality

Previous articlestate of national disaster declared in South Africa
Next articleStar Wars: Obi-Wan Kenobi would have used this power of the dark side to protect himself from Darth Vader