“For us, the 15 and 23 are really crucial, ie the amendment by Andrej Babiš as a whole,” states Schillerová. According to her, any increase above 15 percent would mean higher taxes for self-employed people.
At the same time, the Ministry of Finance is asking senators to exclude from the tax package an increase in the taxpayer’s discount.
However, rather than any higher rate of income taxation, the YES movement would have preferred the current parliamentary version of the package, which therefore includes an increase in the discount.
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ODS senators are considering votes for the 15 percent tax, and the People’s Party is willing to negotiate it, according to information from the Czech Television. On the contrary, the Mayors or the SEN 21 and Pirates Club is against it.
“I personally consider what the Chamber of Deputies approved to be very bad, and any other proposal that would be approved by the Senate will, in my opinion, be better,” said the chairman of the upper chamber Miloš Vystrčil from the ODS.
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The People’s Party wants to keep the taxpayer’s discount
For example, for the People’s Party, which has the third strongest club in the Senate, it is essential that the taxpayer discount remains at least partially in the package. “It is definitely one of the basic premises that we will follow in our decision-making,” announces Senate Vice-President Jitka Seitlová (KDU-ČSL).
“We are breaking up with the Prime Minister on this, because for us the discount on the taxpayer is probably the best in the package,” says Václav Láska (Senator 21).
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Due to the package, as it came from the lower house, up to 130 billion crowns would fall out of the state coffers every year. All clubs insist that the government, after tax cuts, compensate municipalities and regions for the shortfall in their budgets. Municipalities receive a third of their income tax collection. According to Schiller, she is ready to negotiate compensation.
After the eventual return of the law to the Chamber of Deputies, the deputies will have the last word just before Christmas. President Miloš Zeman will therefore receive the tax package for signing at the earliest around the Christmas holidays. Zeman agreed to reduce the income tax of employees to two years, but there is no time limit in the tax package.
The promise that taxes will be reduced for only two years will be repeated next week at a joint meeting with the President of the Minister of Finance Schiller.
We cannot vote for right-wing proposals, says Hamáček
The prime minister does not have to explain tax changes with the finance minister only to the president and senators. The coalition CSSD does not agree with the proposal to reduce the income tax to 15 percent of gross wages. The Social Democrats prefer to increase tax rebates on individuals. The Governor of the Pardubice Region, Martin Netolický (CSSD), called on his party to leave the government because of this.
Deputy Prime Minister and head of the Social Democrats Jan Hamáček perceives the current friction as an ideological dispute – if it is resolved and is unique, government cooperation can continue, he says. “The problem is that the YES movement is not entirely ideologically anchored, and for the last three years it has emerged as a center-left movement. It worked for us there because the programs were very close. At the moment when Prime Minister Babiš came up with a completely right-wing proposal and found support from the ODS, we cannot vote for it, “he explains the current position of the CSSD.
If, in the end, the Social Democrats did leave the government, the prime minister said, the cabinet would not have to ask for confidence again. “The government has confidence, only five ministers will be replaced,” Babiš told ČT. He emphasized that he did not want changes in the government, but admitted the problems. “We didn’t choose it, we had that partner left. At that moment, we were glad that it was there, the cooperation was completely different until now, now it is similar to Sobotka’s, “he said, urging the CSSD to” try to communicate normally “.
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