Advise the government: Income tax cuts for employees could not be a temporary measure but a permanent one

The sociologist said that the proposal to temporarily reduce, until the end of the year, the standard rate of personal income tax (PIT) of 20 percent. up to 15%, applying it to the income of all employees up to the level of 3 average wages (VMU) (4,000 euros gross), as well as to anticipate the planned increase in the amount of non-taxable income (NPD) and introduce an NPD higher than 50 euros already this year, link me.

“Those presidential measures to reduce the GPM tariff, and at the same time to advance the NPD, are such a typical measure. When there is an economic downturn, efforts are made to leave people with more money to consume. Only that of Our GPM was not entirely typical and NPD was not the same for everyone, but it was different. (…) And that proposal can be said to take the side into account, I would say that it is not bad.

And the fact that the step reduction is limited from 20 percent to 15, applying it to the earnings of all employees down to the 3-average wage level (VMU). Now it is three steps from wages, we could say that this could be not only a temporary measure, but a permanent one, ”said sociologist Delfi. Hoping that the new ruling majority can raise the issue.

R. Lazutka, in evaluating President G. Nausėda’s proposal that a lump sum of € 200 would be paid to children from large, low-income families, as well as children with disabilities by July, and a lump sum of 120 euros to all other children, said that in reality, this will not change the situation in the country.

“It must be understood that he will also sign 200 euros for pensioners, which was approved by the Seimas. This expands, in my opinion, the lump sum is completely unnecessary, wrong. Because retirees are very diverse. We have also heard the ridicule of the Seimas members themselves that they will receive those benefits themselves. And other working people get two pensions. After all, it is more important to ensure a more stable income, not once, if we want to stimulate the economy, “he explained.

A Delphi interlocutor said that the expanded list of lump sum recipients does not necessarily mean that the economy will be stimulated.

Still, people plan their consumption based on what their income will be, not that one gift. A person who needs to change the refrigerator to buy shoes will plan the purchases, knowing that this income will not increase constantly, “said the sociologist.

He said in Delphi that with 200 euros in hand, a person will not be in a hurry to run to the store to spend them, but will keep them for a “blacker day”.

“It is not so good to stimulate the economy,” said Lazutka.

“They definitely won’t make any significant changes (these proposals, aut. P.), because they are lump sums.” (…) And you still need to worry about what will happen to New Year’s retirees, because pensions increase every year. But whoever is with them should not throw a lump sum, the economy will certainly not recover on January 1, “predicted sociologist R. Lazutka.