Hamáček resists tax cuts: We cannot do ODS policy

The CSSD has already talked about possible taxation of banks and telecommunications in the past. With the banking sector tax, Hamáček would also deal with the loss of state budget revenues in the event of tax cuts.

Babiš said at the weekend that from next year he expects to abolish the super-gross wage and introduce a 15 percent tax instead of the planned 19 percent. According to the Ministry of Finance, this would lead to a loss of income of 90 billion crowns. Effective taxation for employees is now 20.1 percent.

No one can expect the CSSD to pursue an ODS tax policy

CSSD chairman Jan Hamáček

Hamáček called Babiš’s plan unrealistic in Práv and Novinky on Tuesday. “No one can expect the CSSD to pursue an ODS tax policy,” Hamacek said.

“The tax wheel (former Minister of Finance) Vlastimil Tlusty, which was a symbol of a 15% ‘equal’ tax, must remain in the abyss of history,” Hamáček recalled a paper wheel from which people could find out in 2006 how much they would find in introducing a flat tax of They saved 15 percent.

The coalition agreement YES and the CSSD provides for the abolition of the super-gross wage and a rate of 19 percent of the gross wage. “We want to abolish the super-gross wage, but at the same time the revenue side of the state budget must be resolved. A sector tax for banks, for example, can be such a solution,” Hamáček wrote.

The proposal for a bank tax was presented by the CSSD last May, and according to the party’s ideas at the time, it was to take the form of an asset levy. The rate would increase progressively from 0.05 percent to 0.3 percent and, according to CSSD estimates, would bring up to 14 billion crowns a year into the budget.

At that time, Babiš sharply refused to discuss the proposal. When the CSSD later wanted to present him as a deputy, the Minister of Finance Alena Schillerová (for YES) warned that this would be a violation of the coalition agreement. It requires that tax laws be submitted only as coalition-agreed, which means that they will be supported by an absolute majority of YES and CSSD ministers.

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