Reinforce the progressiveness of social levies.

Summary The coexistence of three massive labor cost reduction schemes, the general exemptions from employer contributions, the Tax Credit for Competitiveness and Employment, and the "responsibility pact" whose implementation was announced at the beginning of 2014, is not a guarantee of legibility, simplicity and coherence. The purpose of this article, is to propose the main lines of a flat review of all these devices. We draw on the lessons of experience, through the history of social levies and exemptions. We also draw on the lessons of economic theory, from classical arguments to those of matching models and applied econometric studies. We argue for a reinforcement of the progressivity of social levies, i.e. to concentrate exemptions on the lowest wages.