What is the "single social security contribution" that Emmanuel Macron wants to implement "before the end of his five-year term"?

During his highly publicized appearance on TF1 on Tuesday, May 13, Emmanuel Macron spoke with several speakers, including Salomé Saqué, Cécile Duflot, and YouTuber Tibo InShape, on a variety of current affairs. The head of state vigorously defended his record on economic issues in front of Sophie Binet, the secretary general of the CGT (General Confederation of Trade Unions), and Agnès Verdier-Molinié, director of the Foundation for Research on Administrations and Public Policies (IFRAP).

“Don't you think it's time to find solutions to break the debt spiral?” she asked. The president drew on the years of fiscal austerity before the Covid crisis to respond to her attacks. “Per year, we increased public debt by 1.8 points. We've suffered crises, but my predecessors also experienced increases, notably by 1.5 points for François Hollande,” “and without a crisis.”

Save 7 to 8 billion euros by cutting state spending

According to the essayist, one of the avenues available to the government to achieve the €40 billion in savings needed in the 2026 budget would be to reduce state spending, primarily targeting taxes and the number of civil servants. According to his estimates, such a measure would generate savings of between €7 and €8 billion.

Regarding the public deficit, Emmanuel Macron believes that "France's primary problem is that it doesn't produce enough." "I fully accept the 'whatever it takes' approach during the Covid crisis," he added. "Yes, we spent a lot of money, but we preserved our production capacity. We avoided unemployment."

He also reiterated his desire to simplify procedures. “There are still too many French and European standards. This fight for simplification is one of my priorities, and it is a point on which I think we can achieve a majority,” he declared, returning to a text currently under consideration on “simplifying deadlines.” “I want us to introduce a single social security contribution before the end of this five-year term,” he declared.

This "single social security levy" is a measure envisaged by Emmanuel Macron to simplify the French tax and social security system. Currently, capital income is subject to a single flat-rate levy (PFU) of 30%, consisting of 12.8% income tax and 17.2% social security contributions. This reform aims to unify these levies into a single rate, thus simplifying the taxation of capital income.

Implementation before 2027

Emmanuel Macron has expressed his intention to implement this single social levy "before the end of the five-year term," that is, by 2027. This initiative is part of a series of tax reforms undertaken since 2017 , such as the abolition of the ISF (wealth tax), the reduction of corporate tax and the abolition of the housing tax for primary residences.

However, this measure has attracted criticism, particularly because of its impact on the poorest and the loss of tax revenue.