Overview

• The government is studying a reduction in employee payroll charges to bring net salaries closer to gross as part of 2026 budget talks, with no decision yet.
• A Senate report published on September 23 warned that Social Security finances are in a dramatic state, highlighting the revenue risk from lowering CSG and CRDS.
• Funding ideas floated include a VAT increase and U2P proposals to tax rental income, freeze higher pensions, remove the 10% pension rebate, and raise inheritance taxes, though the Élysée opposes new taxes on companies or the wealthy.
• Sébastien Lecornu said he would not adopt a Zucman-style levy on very high incomes and would not restore the wealth tax, narrowing potential offsets.
• Economists note inflation has been the main driver of lost purchasing power and caution that any cut to contributions would require compensating revenues, while the Socialist Party backs a targeted CSG cut with uncertain financing.