Sunday, June 18, 2017

Rant about Czech politics

WArning: Long Czech-politics related rant that probably nobody will read to follow.
I am stressed about the Czech elections.
Mainly  CSSD's mad proposal to close the 60% tax loophole for zivnost'aks, a move which would make average wage SKYROCKET on paper, while taking money away from a sizable amount of people and giving it directly to the government. It's just an accounting trick.
The retail and service sectors of the economy would collapse, as the Zivnostak's all los3t about 20  to 30 percent of the take home pay they have now (an enormous amount!) while employees on plny uvazek wages would actuallyremain the same. So get this: salaried employees: no change. Sole traders: twenty or thirty percent less money. Abracadabra! Average wage goes up.
What will end up happening is that there are going to be a lot more dohoda workers working on multiple dohoda contracts as small businesses struggle to find ways to pay their employees enough. That is going to fucking WRECK the medical and social sectors which means the medical and social contributions will have to go up.
For employees now they are already among the highest in Central Europe, maybe even the highest!
Some small businesses will absolutely collapse, raising unemployment and thus delivering contractors on their knees to big businesses who are desperate for people at the moment. (And that is what is all about: apparently at full employment, the Czech Republic starts cannibalizing itself in an attempt at continued growth.)
I've never seen a clearer example of a political party wanting to shoot the economy of a country in it's foot. Not in my life. Jesus, the Republicans in the US are less foolhardy than this. Except for electing Trump, of course.
Of course, CSSD doesn't care. They are counting on 90 percent of the populace not knowing jack about the ridiculously complicated way business works in this country. Supergross, gross, net...tax write off's, flat taxes...it's a maze. You almost have to be on the otherside of the payroll desk to understand it. 
The sensible approach that might not wreck the economy (because the 60 percent Zivno write off is indeed a ridiculous facet of the economy that makes the Czech Republic seem much poorer than it is, while simultaneously guaranteeing shoddy public services ) is to reduce the write off (to say, 40 percent) while lowering social and perhaps medical contributions for plny uvazek employees. that way the average wages goes up on paper, employees get a de facto pay rise, and while zivnostak's make a little less, they aren't crippled and can hopefully raise their wages and hopefully it will work out.
Better yet, reduce the write off in increments, say, of two percent a year, allowing Zivnostaks the inspiration to raise their prices, say, .5 % a year. More money flows in to the coffers of the government but no one is hurt.
Just getting rid of it is going to cause the equivalent of a cardiac arrest.
Oh, well, at least the gastropas food voucher industry will thrive as small companies desperately attempt to pay employees a living wage. Unless they decide that is a loophole that must be closed too.
Shit, given the options of political parties, am I going to have to support fucking ANO? That is like supporting hopelessly corrupt big business Republicans. Yuck!!! 
On the bright side, CSSD is bringing back Jabba the Hut, er, I mean Paroubek which will probably doom them.
We need a pro-small business centre right (in European terms) in this country so badly. Something like the old ODS, only hold the evil. 
Fucking present-day ODS tiptoeing down the nationalist path doesn't make me feel any better.

The only consolation to me in this proposal is that it pretty much puts a lot of  pressure on Z-listed competitors. It is going to make things more complicated for my business; but it's going to destroy them. 
Rant done

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