Hundreds of billions of crowns are missing from the state budget of the Czech Republic every year. This is an indisputable fact that something will have to be done about it, although the people responsible don’t like to talk about it. And the consolidation package valid from this year is just a start, and a timid one at that. Much more will need to be done.
Who do we tax?
Economists mostly see the problem in the fact that the so-called super-gross wage was abolished. Instead of the tax burden increasing, which would correspond to the growing demands of the state apparatus, it was dramatically reduced by this step. Suddenly, 100 billion crowns were cut from the budget, without any compensation.
The truth is that it has come in handy for the employees, as everyone will welcome a higher net salary. Now it’s just very difficult to return it again, because there has also been considerable inflation and people are generally deep in their pockets. However, the money will have to be taken somewhere.
Thus, the discussion about higher taxation of self-employed people is back in the game. This debate periodically returns and it is always pointed out that the self-employed do not contribute as much to the budget as the employees, even though the latter have been considerably relieved.
This time, however, the economist of Česká spořitelna unusually became a strong voice calling for higher taxation of self-employed people, which is very strange to say the least.
Foto: Shutterstock
People don’t like these words
“There are employees who receive a salary of around half a million crowns a year, and their work is taxed at roughly 35 to 40 percent,” began his tirade, the economist of the Czech Republic, David Navrátil. “And at the same time, self-employed people who fit into the right flat tax regime, who earn maybe over a million a year, and their profits – and I mean real profits, not sales – are only taxed at 6 to 8 percent. This is a huge hole in our tax system.“
Best in taxation: “There are employees who receive a salary of around half a million crowns a year, and their work is taxed at around 35 to 40 percent. And at the same time, self-employed people who fit into the right flat tax regime, who earn perhaps over a million a year, and their profits – and…
— David Navratil (@DavidDnavratil) October 25, 2023
These are indeed very sharp words that did not go unanswered. “How can such an experienced economist support such nonsense. E.g. for craftsmen, it would lead to a significant increase in prices and the result would be realization mainly in the black,” asks one of the discussants.
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For some people, apparently self-employed people who know very well how difficult it is nowadays to make a living in this regime, it was already too much. They announced that they would rather cancel their account with Česká spořitelna than support this. “Thank you for making it easier for me to decide whether or not to stay with Česká spořitelna,” stated, for example, Lukáš Pastrňák.
Foto: Shutterstock
2024-01-26 20:00:00
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