The average employee is finally free to do what he wants with his money
In 2024 again, throughout the European Union, it is in France that the “tax pressure” is the highest. And, logically, it is here that the “day of tax freedom” falls on the latest of the year, which is July 17. “This date symbolically marks the day when employees are free to do what they want with their money, ” stated Nicolas Marques, the general director of the Molinari Institute. In other words, an employee without children, who earns the average salary, must work until this date to pay all the contributions and taxes, including VAT, necessary to finance public spending.
For comparison, in 2024, the English will be “released” from the fiscal on May 1, the Spanish on June 10, the Austrians on July 12 and the Belgians on July 15, calculated the Molinari Institute. The average in Europe, for its part, is close to June 11. This situation is explained in particular by the absence of mechanisms for the automatic revaluation of income tax brackets in many countries, which is emphasized by inflation.
The “labor cost” in France is still chosen
The French tax pressure, despite its advantages, such as an affordable health care system and a generous pension system (whatever people say), has a negative effect on competition among businesses and the purchasing power of employees. Nicolas Marques explained that the average French employee is “worth” 59,458 euros per year to his employer, but only receives 27,326 euros net after taxes and fees. This situation contributes to the general impression that the work is not paid enough, which increases the demands associated with purchasing power, as observed in the last legislative election.
Despite the efforts of the Macron government to reduce social security contributions, Nicolas Marques considers that these measures are not enough. The government has reduced taxes by more than 60 billion euros, but current budget constraints limit the possibilities for further cuts. The Court of Auditors is even planning significant tax increases to reduce the public deficit, which could reach 21 billion euros in 2025-2026, exacerbating the already high tax pressure.