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Exact(19)
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.
A 75% top tax rate will come into force for the rich, paid by firms in extra payroll charges.
He hopes to encourage job creation, by allowing each company to hire two workers free of 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.
Similar(38)
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.
Reductions in payroll social charges were promised, but never delivered, by Mr Hollande's predecessors, Nicolas Sarkozy and Jacques Chirac.
How can France lighten the tax burden, including payroll social charges, so as to encourage entrepreneurship and job creation?Put simply, France is about to face the tough choices that Gerhard Schröder, Germany's former chancellor, confronted in the early 2000s or that Sweden did in the mid-1990s, when its own unsustainable social system collapsed.
Borrowing from the law-firm economics of billable hours, he has ordered plants to make sure that at least 85% of the labor hours in the payroll are charged to a specific job.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com