ČSSD wants progressive tax to compensate cancelled cuts

Prague, April 29 (CTK) - The opposition Social Democrats (CSSD) will again propose the introduction of a progressive tax in connection with the recent cancelling of cuts in the Czech home-building savings system by court, which means higher state expenditures, CSSD leader Bohuslav Sobotka said Friday.

People with monthly incomes over 100,000 crowns should pay a 30-percent tax, or two times more than now, Sobotka told journalists.

The state support for home-building savings was cut from 15 to 10 percent as of 2011 and a special 50-percent tax on state support for 2010 was introduced within austerity measures pushed through by the coalition government of Petr Necas (Civic Democrats, ODS) last autumn.

Citing a misuse of the state of legislative emergency, the Constitutional Court on Wednesday abolished the special 50-percent tax on the state support to home-building savings participants for 2010.

Finance Minister Miroslav Kalousek (TOP 09) said he would be short of six billion crowns in the budget due to the court's verdict.

The Social Democrats said their proposal is a reaction to the statements by some cabinet ministers.

Sobotka noted that Kalousek and Labour Minister Jaromir Drabek (TOP 09) complained about having a moral problem as they would get the state contribution within the home-building system although they are too well-off to need it, while there is not enough money in the state coffers.

"We decided to help the ministers with this problem," Sobotka said.

The money they do not need would be taxed, he added.

The CSSD proposed that the progressive tax be introduced already in March. The government coalition rejected the proposal in the lower house of parliament then.