French President Nicolas Sarkozy has divulged plans to introduce a tax on the daily compensation paid out to those who have suffered an accident at work.
According to the French President, this type of compensation merely serves to replace income earned whilst at work, and as such should not remain exempt from taxation.
Firm in the belief that the government’s latest proposal is logical and fair, Budget Minister Eric Woerth has, nevertheless, underlined that the government's aim is to impose a tax on short-term compensation for job-related injuries and not on long-term compensation, for which it intends to grant a certain form of tax exemption.
President of the parliamentary group Union for a Popular Movement (l’Union pour un Mouvement Populaire – UMP) Jean-François Copé has revealed that the proposed measure, which the government hopes to introduce in the 2010 budget, could generate in the region of EUR150m.
The highly controversial proposals have, however, sparked outrage from unions and from the Opposition. Even the President of the French National Assembly, Bernard Accoyer, has expressed his reservations about the plans, urging the government to conduct a serious debate on the issue as quickly as possible.
For the Socialist Party, the proposed new tax merely represents the third and final blow to those affected by a work-related injury. Not only have those concerned already suffered traumas associated with the accident itself, but they have also already experienced a reduction in their income (since compensation is based on 80% of basic daily salary), and are now facing the prospect of a new tax from 2010.
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