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Rather than cut public spending (at 57% of GDP, the highest in the euro zone), he has raised taxes, including a payroll charge on high earners of 75%.
But companies may have to pay the 2% levy, which is collected by tax authorities and then (after deducting a non-reimbursable administration fee) held in escrow, even so.Many companies are delaying anyway, hoping to avoid a greater inconvenience than the payroll charge.
Similar(55)
The auditor pointed to the need to cut heavy payroll charges that keep labour costs high.
Mr Sarkozy is right that payroll charges deter job creation in France.
He hopes to encourage job creation, by allowing each company to hire two workers free of payroll charges.
A 75% top tax rate will come into force for the rich, paid by firms in extra payroll charges.
He plans to liberalise the 35-hour week by exonerating all overtime from payroll charges and income tax.
Payroll charges on low-paying jobs have been cut, but only as compensation for the extra cost of the 35-hour week.
The political son of Jacques Delors, a moderate Socialist, Mr Hollande invented in 2012 a complex tax credit for firms designed to lower payroll charges by up to 6%.
A former senior official of the club is under investigation for failing to pay payroll charges on players' salaries in the years after.
"But it is true that, during industrial unrest, automatic trains are much more reliable".Strict labour laws, costly payroll charges and erratic strikes seem to make French firms especially keen on technology.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com