Occupational accidents taxation: the disputed levy

The economic, social and environmental council recommends the relinquishment of the daily allowances taxability arousing a strong debate

Will the project of taxability of the daily allowances paid out to the occupational accidents victims be born? This idea, defended in particular by Jean-François Copé, puts the parliamentary majority ill-at-ease along with labour unions, the parliamentary opposition and even the employers. These latter, reunited in the common cause: the economic, social and environmental council (CESE). Seized by the president of the National Assembly, the Bernard Accoyer, UMP, who, as recommended, declared on Tuesday - The relinquishment of this project, which would deserve a study of impact -. Even CESE specifies a "momentarily welcomed" relinquishment.

According to the Council, - the victims of occupational accidents are to be considered as such while the compensations which they get do not owe (...) According to CESE as well as its president Jacques Dermagne, these compensations - Represent a fixed character limited up to 60 % of the salary, - and besides – given the fact that the disfiscalization should contribute in easing the engendered income loss the citizens will due to the accident compensate the payment losses thus only partially. -

- The Council still underlines that the periods of ruling consecutive to an occupational accident - Penalize the employees regarding their pension rights, and by being excluded from the contribution basis. As far as this financial penalty remains without any consequences towards, for instance, some evolution of the volume or the gravity of occupational accidents, it thus seems inequitable to stigmatize them by a specific measure, - he argues.

In all that, CESE does not want to show itself totally hostile toward a long-term changes. - This idea could find its place within the delivery framework of our whole system of fiscal and social takings (...) -, writes Jacques Dermagne. The president of the PS group in the National Assembly, Jean-Marc Ayrault qualified on Tuesday this decision of "hurtful slap" for Nicolas Sarkozy and Jean-François Copé, who support this measure.

- We know that when we are a victim of an industrial injury, we don't complain, we are financially penalized, thus it’s a shocking initiative -, he adds, considering that the answer of CESE – Doesn’t really seem surprising but is a supplementary slap to the government -. The occupational accidents compensations taxability should therefore become the preliminary object of an amendment to the budget projections for 2010.

The Minister of the Budget, Eric Woerth, has already said that the government would support this amendment. The public finances estimated gains are about 150 million Euro. CESE also confirms taking "the emotional reactions which the announcement of this measure aroused" into account. "Taken remotely, it may pull a disproportionate in social climate deterioration towards its budgetary advantages -, he adds. Besides Sarkozy’s, Jean-François Copé's proposition has already received the support of several Ministers, in particular Christine Lagarde (Economy) and Xavier Darcos (Work).