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> Macron’s Renaissance party argues reform of the pension system is necessary to sustain it long into the future. It has a projected annual deficit of 10 billio
by andrekandre 4y ago
> Macron’s Renaissance party argues reform of the pension system is necessary to sustain it long into the future. It has a projected annual deficit of 10 billion euros ($10.73 billion) each year between 2022 and 2032, according to France’s Pensions Advisory Council.
couldn't they have just.... funded it?
- Georgelemental 4y agoFrench taxes are already very high.
- RegnisGnaw 4y agoThat's why the protestors wants to increase corporate taxes, not personal taxes.
- influx 4y agoSooner than later, a growing population of older individuals who are living longer and no longer in the workforce becomes unsustainable for a country whose workforce primarily comprises younger individuals.
- skywal_l 4y agoThe system in France is perfectly stable as the government itself proved. Macron and his aides have publicly stated that this reform is not about "saving" the pension system which work actually pretty well. It's about reducing corporate taxes [0]. [0]: https://www.budget.gouv.fr/files/uploads/extract/2022/programme_stabilite/PSTAB%202022.pdf https://www.budget.gouv.fr/files/uploads/extract/2022/progra...
- nxm 4y agoTo what extent? They’re already pretty high and make France not competitive.
- skywal_l 4y agoTaxes are high because the pension system is managed by the public sector and are financed by taxes. In a country when pension are a matter of personal responsibility, they are paid to private companies. So you see, when a french person pay for their pension, it's taxes. When a person from another country pay for their pension to private companies, it's GDP. In the latter case, you have the additional freedom of not paying anything (especially if you don't make enough) and then hope that you die before retirement. I would not call this freedom though. Try to think outside of the conventional wisdom which is completely skewed
- rayiner 4y agoGDP is calculated using either income before taxes or total expenditure including government expenditures.
- skywal_l 4y agoIt is an interesting comment but misleading and irrelevant to the subject. When you pay for your pension (in a country like France) it is not included in the GDP because it is considered a tax. When the government pay their pension to a pensioner it is not included in the GDP [0]. [0] https://www.investopedia.com/ask/answers/082415/are-social-security-payments-included-us-gdp-calculation.asp https://www.investopedia.com/ask/answers/082415/are-social-s...
- rayiner 4y agoThere are two ways to calculate GDP, an income approach and an expenditure approach. In the expenditure approach, transfer payments are not listed as an expenditure. But when a retiree buys something with that money is counted. Under the income approach, social security tax payments are included in income: https://staffwww.fullcoll.edu/fchan/macro/2gdp_computation.htm https://staffwww.fullcoll.edu/fchan/macro/2gdp_computation.h... You’re incorrect to say that an economy without social security artificially seems like it has a higher GDP than one with social security. It is counted as income to the employee, and anything purchased with it is counted as consumption.
- soitgoes511 4y agoWell.. we need the money to pay for the Olympics next year. Priorities, you know?
- JPLeRouzic 4y ago> couldn't they have just.... funded it? * Currently there is only 1.7 active contributors per retiree! * There are 5% more retirees each year these days (700,000 new retirees each year). Double the newborn number each year. * 331 billion euros of pension system expenditure in 2019. 3 times the number paid in the 1980'. More than what the French state gets from taxes. https://travail-emploi.gouv.fr/retraite/le-systeme-de-retraite-actuel/article/chiffres-cles-retraite https://travail-emploi.gouv.fr/retraite/le-systeme-de-retrai...
- andrekandre 4y agoso, it costs more, but that doesn't answer the question why they couldn't find a way to fund it today (raise the budget etc), and why is the only choice to raise retirement....
- halJordan 4y agoThey just turned years of expenditure into years of income. Those people who have to work for an income will have it taxed. So.... yes.