Page 6 - IDEA Studie 4 2022 Dopady zruseni superhrube mzdy

SPOČÍTALI JSME ZA VÁS: DOPADY ZRUŠENÍ SUPERHRUBÉ MZDY, SNÍŽENÍ ODVODŮ NA SOCIÁLNÍ POJIŠTĚNÍ A ZAVEDENÍ DAŇOVÝCH PRÁZDNIN IDEA 2022 • Any real impact of the proposed introduction of tax holidays for families who are receiving the parental allowance or who have 3 or more children, as set out in the policy statement issued by the new Czech government led by Petr Fiala, would therefore be extremely limited. Such tax holidays would almost exclusively benefit employees in the highest quintile by income. In the other income groups, the effect of such tax holidays would be negligible or zero. Furthermore, if such tax holidays were limited to within a certain income bracket, as the policy statement implies, then it is highly likely that such a policy would have practically no effect. • Given that the proposed tax holidays are targeted at families who are in receipt of the parental allowance or who have 3 or more children, this policy overlaps almost completely with existing tax support for families (tax relief for children and for a low-earning spouse). • The second proposal in the government's policy statement, which suggests a reduction of 2 percentage points in the social security rates paid by employers, would – in contrast - have a very substantial impact on employee taxation. This policy would cost about 38 billion CZK in 2022 and would reduce the average tax rate by approximately 1 percentage point for all employees. The average employee in the lowest quintile by income would save approximately 215 CZK per month, while for those in the highest quintile the saving would be 1,350 CZK per month. 4