Protest. The reduction of taxation on labor is demanded

Protest. The reduction of taxation on labor is demanded
Protest. The reduction of taxation on labor is demanded
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The National Trade Union Bloc today started a protest in front of the Government headquarters to demand a reduction in labor taxation.

The rally is followed by a march to the Ministry of Economy, Entrepreneurship and Tourism, the Ministry of Labor and Social Solidarity and the Ministry of Finance.

“The National Trade Union Bloc informs that it will organize a protest rally, together with the 29 affiliated federations, on Monday, May 13, 2024, starting at 10:00 a.m., in front of the Government of Romania, under the slogan “Respect for work and those who I work! Workers in Romania no longer want to be guinea pigs of fiscal experiments!”. The rally will be followed, starting at 12.00, by a march to the Ministry of Economy, Entrepreneurship and Tourism, the Ministry of Labor and Social Solidarity and the Ministry of Finance. The aim of this protest is to reduce taxation at work in Romania. In this way, we ask for respect for work and those who work! In recent years, the Romanian political class has put capital above all, and this has led to the migration abroad of 5 million Romanian citizens of working age. Romania today has the most hostile labor market in terms of social dialogue! Romanian workers became the guinea pigs of fiscal experiments made by all governments after 1989.

Thus, the contribution to health and the pension system doubled for employees, while for employers it was reduced to zero. Today, Romania has one of the highest tax burdens on labor costs in the EU: 42.8% compared to the European average of 38.6%! Over 87% of the fiscal burden is represented by the social contributions levied to finance the social security system. 82.6% of the financing of the pension system and the health insurance system is provided by contributions paid by the insured persons, in proportion to over 97% of them being employees. The fiscal burden placed on the shoulders of employees is much more than 50%, as much as it represents the maximum burden stipulated by the IOM Convention and the European Social Security Code.

The quality of social protection benefits is very low. At 65, the healthy life expectancy in Romania is only 4 years, the EU average being 9.5 years for men and 9.9 years for women. In the context where approximately 24% of pensioners in Romania are beneficiaries of the minimum pension, social transfers manage to a small extent to reduce the risk of poverty. The convenience of the tax administration and the ability of some socio-professional categories to obtain preferential treatment during working life have led to the current situation, in which a small share of workers in Romania must assume a significant cost to finance a social protection system which is almost universally used. In other words, instead of widening the tax base, the Romanian state prefers to take a lot from the right people!”, the NBS press release states.


The article is in Romanian

Romania

Tags: Protest reduction taxation labor demanded

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