Social VAT, a controversial measure brought up to date for the 2027 presidential election

NOTA BENE - As the 2027 presidential election approaches, this system is promoted by several candidates, who present it as the miracle solution to lower the cost of labor and increase net wages.

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Gabriel Attal, François Hollande, Bruno Le Maire... In recent weeks, several declared or putative candidates for the 2027 presidential election have put the question of “social VAT” back on the table. A measure requested for a long time by Medef but politically explosive. If some voices maintain that it would be beneficial in bringing gross salary closer to net salary, others believe that it is only social in name. Le Figaro reminds you of the terms of the debate.

Social VAT is not a new tax. Implementing such a measure would in reality consist of increasing the normal rate of VAT (value added tax), the general tax on consumption, to finance, in return, a reduction in employer social security contributions. The additional VAT tax revenue would be allocated to Social Security. The idea is to base our social model more on consumers and less on businesses. This is therefore a transfer of funding…