The Macron revolution is coherent, it is paraphrased from a famous statement: everything that is good for the first of the rope is good for all the French. It consists of replacing the logic of solidarity with an individual financial logic. Some examples.
Macron replaced the ISF (Solidarity Wealth Tax) with the IFI (Real Estate Wealth Tax). Which consists in subtracting financial wealth from the solidarity tax to allow its holder to invest as he sees fit: in other words, to subtract from public decision, from public interest, from solidarity, to give to individual decision , in search of profit which can, of course, lie in investing in French companies (advanced reason) or foreign companies or better in hedge funds or investments of which one of the most powerful is known today by all: BlackRock, the world’s largest asset manager, with nearly $ 7 trillion whose main customers are institutional investors (Wikipedia). The company displays exceptional operating profitability: buy without hesitation (JDD 18/01/20).
Maintaining the tax on real estate wealth is an incentive for the most fortunate to disengage from investment in real estate, taxed, to switch to investment in finance, not taxed.
However, it does not seem that there is too much housing in France!
This small gift with declining state resources is accompanied by the reduction of 5 euros per month per household in Personal Housing Assistance (APL). Reduction of levy for large. Recovery on the poorest!
On February 1, the Livret A and Livret du développement durable rates will be lowered to 0.5%, the historically lowest rate, with inflation close to 1%. For the Ministry of Finance, the rate of the Livret A is no longer intended to cover that of inflation (Le Monde 12/01/20).
There are 55 million Livret A in France because it is the easiest way for many individuals to have some resources available in case of need. The ministry thinks that this drop in rates should encourage to put the savings in more dynamic investments! More risky! Encourage the poorest to risk their savings! To become a merchant! To tell small holders that they should invest them is to push them to take risks, to convert to stock market speculation? Waking up can be painful in the event of an economic downturn or unexpected funding needs.
It was possible to lower the investment ceiling (currently 22,950 euros) and reserve this advice for holders of the most stocked notebooks! Small Livret A holders will probably be content to see their savings deteriorate rather than risk losing them.
The executive knows that its decision is very unpopular and concerns practically all households that hold one or more Livrets A. The remuneration has become paltry. For Bruno Le Maire, maintaining a rate of 0.75% would have been irresponsible in relation to our policy of investment diversification. And irresponsible for the thousands of people waiting for social housing. In fact, reducing the rate to 0.50% will make it possible to build 17,000 additional social housing units and renovate 52,000 of them each year. The measure penalizes savers but would strengthen the housing policy … He forgets to say that to compensate for this drop in the rate of Livrets, he forced social landlords to reduce rents and therefore their means.
In other words, he organized a 3-band coup on the back of the poor and a more discreet operation, for the benefit of the banks. Because they benefit from 40% of the sums collected: they will remunerate this savings at the rate of 0.5% instead of 0.75%: a gift of 400 million euros (Liberation 18/01/20).
It is interesting to note that the minister justifies this measure by pitting small and poorly housed savers, not to mention the benefits that banks derive from it.
He never said how many homes could have been built with the amount of the gift made with the removal of the ISF.
The reform provides for a single retirement contribution rate of 28.12% on wages, but income above 120,000 euros per year will not give entitlement to retirement and will only be subject to a rate 2.81% of contributions, used to help balance the system. The sums which will not contribute to the balance of the system, on salaries above 10,000 euros per month, give a lot of hope to private insurance or other pension or investment funds.
Emmanuel Macron’s Liberal Revolution is underway: all free, all equal, all fraternal; all punters, all against all.
Never stand in solidarity!
NB: even if work resumes without the total withdrawal of the reform project, the strikers have obtained a certain number of concessions. And no one knows what will happen in the days, weeks to come …
One thing remains, the strikers are suffering a lot financially. Financial solidarity will be appreciated. Morally. Financially.