Tribune. French legislation is constantly expanding, particularly in the economic and social field. This inflation of laws, decrees, regulations, orders and other circulars hinders the economy. Senator Patricia Delmas observed in a ministerial question of 09/15/2022 that normative production had further increased by 15% between 2017 and 2022. For example, the labor code which was 818 pages in 1956 contained 3,889 in 2022, i.e. + 375%. This normative inflation pushes wrongly and through and all the more quickly and badly as many professors of economics and elected officials ignore the company.
Four economists from the Institute of Public Policy, attached to the Paris School of Economics, published a note on June 6, 2023 to stigmatize the rich who do not pay enough taxes, which they do not manage to maintain that from preposterous calculations made by adding to the incomes of the richest fictitious and theoretical incomes. In addition to the more ideological than scientific nature of this study, its authors would like holding companies to no longer be able to benefit from the parent/daughter regime which makes it possible to reduce to very little the tax on income received by a company from a subsidiary which has already been imposed and because it has already been imposed. This would obviously be a considerable handicap for the groups of companies which could no longer organize themselves in a tax-neutral way through various and varied subsidiaries according to the activities and the territories. But these economics “teachers” don’t care because they don’t know about the business world.
Far from the economic eccentricities of the extreme left, the MODEM MP Jean-Paul Mattei sharply and rightly criticized this academic ignorance (Les Echos of 06/12/23), but he did not hesitate to propose in turn increase the share of taxable costs and charges at parent company level on dividend distributions from 5 to 10%, as if it were negligible, whereas it could be very heavy in groups of companies with several levels of filiation.
For its part, the IREF has long denounced that in high school, most economics textbooks teach less about business than about market failures and the essential role of the state. The dominant economic culture thus propagates an atrophied and questionable vision of the company without presenting its fundamental participation in the creation of wealth and values.
It would be desirable for all teachers of economics to be able, indeed should, to spend, before teaching, sufficient time in the management departments of a company to understand the role, concerns and practices of the entrepreneur as much as business requirements. It would be more difficult for elected officials to be subject to the same requirement, but wouldn’t it be possible that in the economic field, each law or decree would be subject to the prior observations, for opinion, of representatives of the business world?
It would still be possible for laws and decrees to be simpler, shorter, leaving individuals the right to contractualize the details of their relationships in their own way, under the control of the courts.
Switzerland is more respectful of the contractual freedom of the parties to the employment contract. It does not have a uniform labor code. Its specific texts on labor law take up a few dozen pages and the rights and obligations of employees and employers refer mainly to the Code of Obligations, itself almost ten times less important than the French labor code. .
Swiss employees work more than in France, but they are nevertheless among the best paid in the world and Switzerland is one or one of the richest countries in the world. There may be some cause and effect relationship.
Jean-Philippe Delsollawyer, president of the Institute of Economic and Fiscal Research, IREF
2023-07-01 10:15:07
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