Mikuláš Ferjenčík from Pirates, Vice-Chairman of the House Budget Committee, talks about budget madness. According to Jan Skopeček from the ODS, however, this is good news that will lead to an increase in employees’ net income. This follows from their reactions on Twitter and on Czech Television.
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Hamáček wrote on Twitter that he had left his Chamber of Deputies when voting on the tax package. “In the coming months and years, our heads will hurt not only from the consequences of the covid, but also from the irresponsible ax stuck in the YES, ODS and SPD deputies,” he said.
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Reason and responsibility prevailed in the Chamber of Deputies, the state of emergency was extended until 12 December 2020. However, if a miracle does not happen, a request for an extension of the emergency. state and today’s debate in three weeks.
– Jan Hamacek (@jhamacek) November 19, 2020
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The changes in the tax system were approved by the Chamber of Deputies tonight, in particular the abolition of the super-gross wage and a significant increase in the taxpayer’s discount. Taxation of the super-gross wage in the Czech Republic will probably end after 13 years, instead only the gross wage will be taxed at the rate of 15 percent from next year and 23 percent over CZK 140,000 per month for higher wages. The repeal is not yet final, it must be assessed by the Senate and signed by the president. Members of ANO, ODS, KSČM, SPD and two non-attached Members Václav Klaus and Tereza Hyťhová voted for the approval of the package as a whole with the adopted amendments.
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Minister Alena Schillerová (for YES) estimated the impact of the approved parliamentary changes on public budgets at approximately 130 billion crowns. According to her, 87 billion of this will go to the state budget alone.
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Ferjenčík told Czech Television that the tax package is, from the point of view of budgetary policy, “simply madness” for which the state has no money. The impact on the state and local government budgets will be huge. “The law as a whole is simply irrational,” he said.
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In the package, the Chamber of Deputies also approved Ferjenčík’s proposal to increase the basic tax rebate for taxpayers. So far, it amounts to 24,840 crowns and should now correspond to the average gross salary for the previous year, next year, according to the pirate MP, it would amount to 34,125 crowns. However, Ferjenčík told television that he did not expect the Chamber of Deputies to approve his proposal and the YES proposal to reduce the tax rate to 15 percent. According to him, the pirate proposal was only an alternative to the YES proposal, and the Pirates expected that the House would choose only one of them and not support the other.
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Deputy Jan Skopeček told Czech Television that he was glad that, after years of ODS attempts, the super-gross wage had finally been abolished. When discussing the proposal for next year, the ODS will come up with proposals where it is possible to save on the expenditure side of the budget. “When taxes are reduced somewhere, savings must be sought,” he said. According to him, it will also be necessary to compensate for the outage to municipalities and regions.
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The chairman of the People’s Party, Marian Jurečka, stated on Twitter that Minister Schillerová had not shown him the benefits of abolishing the super-gross wage on specific examples of people with average incomes, children or mortgages. “She was silent because she would lose her argument,” he wrote to Minister Jureček.
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