French Business Leader Calls for End to Retiree Tax Breaks

Patrick Martin, president of the Medef, advocates eliminating the 10% professional expense deduction for retirees to reduce the public deficit.

Patrick Martin, head of France's largest employer federation, has proposed scrapping the 10% tax deduction for retirees originally meant for professional expenses.
The tax break, introduced in 1977, costs the French government an estimated €4.5 billion annually and allows retirees to reduce taxable income by up to €4,321 per year.
Ending the deduction would increase income taxes for many retirees and could make some currently non-taxable retirees subject to taxation.
Martin also suggested revising the reduced CSG (social contribution) rate for retirees, which is lower than the rate applied to salaries and capital income.
The proposal has sparked debate among policymakers, with opposition from centrist senators, while others argue it is necessary to address France's public deficit.