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Lawmaker: Gabriel Attal wants to increase Macron’s prize to 10,000 euros

Lawmaker: Gabriel Attal wants to increase Macron’s prize to 10,000 euros

Lawmaker: Gabriel Attal wants to increase Macron’s prize to 10,000 euros

It bears the name of the President of the Republic and has already saved his political life in the past. Annual, optional and (for a long time) exempt from social contributions and income tax, the “exceptional purchasing power bonus” born out of the “yellow vest” crisis was quickly renamed the “Macron bonus”. Reintroduced during the Covid-19 pandemic, it was eventually ratified under the name “value sharing bonus” (PPV).

He comes out of the hat in a new version. As part of the Renaissance program for early legislative elections, companies will be allowed to pay a “Macron bonus” of up to 10,000 euros without social security contributions. However, from 1 January this year, this bonus (paid in 2023 to almost 6 million employees for an average amount of €885) is no longer exempt from CSG, CRDS and income tax (IR), otherwise subject to strict conditions (direct your bonus towards a savings plan , work for a company with fewer than 50 employees and earn less than three times the minimum wage). “This is a tool that has proven itself, and that is why we are increasing its maximum amount from 3,000 to 10,000 euros,” insists a representative of the election team.

Otherwise, the 2024 rules continue to apply. Specifically, Macron bonuses paid this year under the Renaissance program will not be exempt from CSG, CRDS and IR for most beneficiaries.

Rise of real estate for working class youth

Is there a risk that these increased bonuses will replace the formal salary increases that are also synonymous with pension contributions? “Since they existed, bonuses have been paid not to the detriment of salary increases, but to the detriment of dividends,” answers the Renaissance representative. However, at the same time we will work to reduce fees to encourage companies to raise wages. »

The Court of Audit will undoubtedly approve, even though it has just become concerned about the sharp rise in the social security deficit due to exemptions from social contributions on salary supplements such as Macron’s bonus. The New Popular Front, for its part, intends to increase the minimum wage to 1,600 euros at the expense of employers. “Untenable,” cries the president’s party, claiming that “500,000 jobs will be destroyed.”

Another Renaissance proposal: exempt first-time home buyers from notary fees when purchasing a home worth up to €250,000. That is, on average, the discount for one file ranges from 10,000 to 20,000 euros. Target ? “A million young people from the working and middle classes,” we clarify in the presidential camp. Other parameters, such as accounting for basic tax income, should offset the windfall effect for first-time buyers in the higher classes.

The downside of the system is that the municipalities and departments that collect those famous notary fees will cower… “This measure will be fully compensated to the communities,” assures the Renaissance representative, estimating it at 2 billion euros.

Source: Le Parisien

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