“The failover of the YEAR in reduction of expenses will reduce the deficit of competitiveness of France,”

Forum. The Medef, which had advocated for the creation of the tax credit for competitiveness and employment (CICE) at the beginning of the quinquennium previous to berate him for this its transformation to a decrease of social security charges, arguing that the increase in the cost of the work that this transformation would lead to to employers.

We must not be mislead : the companies do not have in reality never mastered the SIEC to a decrease in the cost of labour in the strict sense of the term. If the credit established in 2012 and effective as at 1 January 2013 provided them with oxygen, allowing to restore their margins in a difficult economic context, the results in terms of job creation are more than mixed, as revealed by a recent report from France Strategy, which the figure at around 100 000 new jobs between 2013 and 2015. The SIEC has therefore improved the outcome of the business, which was necessary, without, however, installing a drop in the cost of labour in the management of companies.

The decrease in the cost of the work necessarily involves a reduction of social charges. The implementation of a tax credit, which is the deferred effects in the time, could not be a long-term solution for the company. And even if the transformation of the YEAR-a decrease of social charges provides, in a first time, a gain less important to enterprises, particularly at the level of senior salaries up to 2.5 times the minimum wage (6 % of payroll vs. 7 % with the YEAR), she begat a true gain for low wages (10 % vs 7 % with the YEAR), while falling in the long term. In fact, it is more difficult to go back once it has recognised a reduction in social charges of removing a tax credit…

It is the competitiveness of French companies, because the level of social charges is a good indicator on the european scale. Indeed, the link between the CICE and the…

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