Workers set to benefit in social charge reform plan

One of the more controversial proposals of President Emmanuel Macron is raising the social charge the Contribution sociale généralisée (CSG) by 1.7% as part of a redistribution of charges aimed at benefitting, in the main, people in work.

The measure is expected to come at the expense of retirees (but not those with the smallest pensions) and those receiving income from rents.

CSG (see column right) is – as its name suggests (‘generalised contribution’) – levied on all kinds of income, apart from certain social benefits such as family allowance or RSA income support.

This ‘flat tax’ (it does not rise in bands like income tax) was introduced in 1990 at a mere 1.1% and has since periodically increased.

The plan is to increase it on most kinds of in­come, though not small pensions or unemployment benefit, with the proceeds going to ...

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