Final Word from Wednesday, November 15, 2006
Mirek Topolánek wants to justify an ODS-ČSSD government in part by concentrating on tax reform. It's a typically right-wing topic, but Topolánek's partner-to-be, Jiří Paroubek, likes to point out that it was actually ČSSD that cut the corporate tax rate to 24%. More problematic is ČSSD's record on personal income tax. As the American Chamber of Commerce noted, the average wage-earner is now subject to a five-point-higher tax rate than in 2000, because the tax brackets haven't moved up to to reflect the 43% rise in average wages. The number of people in the lowest (12%) tax bracket has fallen by 32% in six years. If ODS succeeds in reducing the progressivity of personal income tax, it's these typically ČSSD or Communist voters who could benefit the most. Which is more than enough reason for ČSSD to jump on the bandwagon and support an overhaul to the tax tables.[Czech Republic taxation progressive income tax AmCham KSČM]