2023-10-06 07:04:09
43% of French people support a system that costs them more than it earns them.
“I pay too much tax and it’s others who benefit!” Who has never heard this phrase or never noticed it? Everyone has already asked the question of the extent of its contribution to the country’s finances, mainly to those ensuring the social protection of residents. Concretely, what is it? INSEE provides a fairly clear answer on the subject.
According to the works from the statistics institute published at the end of September, 57% French people see their standard of living improve thanks to the redistribution of resources via the numerous aids that exist in the country. If a little more than one in two residents benefit from state measures, who pays?
Analysis of the INSEE table shows this: households receiving approximately 1,700 net monthly income after taxes are the financiers of this system. And this, regardless of age, until retirement. Research shows, however, that it is mainly those with a minima a diploma higher than bac+2 which are, on average, the most expensive.
The contributions in question include taxes (income and property), but also taxes paid on a daily basis (VAT) and all contributions linked to one’s salary (employee and employer). This money helps finance pensions, the health system, collective expenses, national education, social benefits, unemployment, sick leave and even parental leave…
How do we arrive at this salary?
Measuring the income gap before and after the deductions and distribution of social benefits shows that the first “deficit” people are 18-29 year olds with a Bac+2 degree. According to INSEE, this is a section which receives €35,630 each year (amount taking into account the cost of employer contributions). A sum which corresponds to a gross monthly salary of €2,358, or €1,844 net before taxes and €1,765 net after taxes, according to the Pôle emploi simulator allowing the cost of an employee to be estimated.
Generally, withdrawals increase over time because assets build up over the years and income can become greater. For example, a person with a bac +3 aged between 18 and 29 pays on average (all contributions combined) €9,980 per year to the State. This amount increases to €43,890 between ages 50 and 64.
So who benefits from all this money? Mainly retirees! It is in fact these 30% of the national population who benefit primarily from this national solidarity: + €20,000 on average each year thanks to social benefits, primarily the retirement pension. And this, regardless of their level of diploma. Another factor to take into account: the increase in health costs at this time of life.
To a lesser extent, it is also the lowest graduates (CAP/BEP or less), therefore the lowest incomes, who benefit from this aid. The report also points to a significant redistribution in favor of single women with children.
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