Employers want salaries cut by 25 percent

A rule in a law abiding country is that every businessman has a file of a tax paying over the time he started up business. A lot of our businessmen have suppressed the truth how they have become affluent and prosperous. It is notorious that lots of criminal suspects (like Sharic) are businessmen possessing large wealth in firms, shares, yachts, a chopper, airplanes, real estate and have their children educated abroad. But, this is not a law-abiding country, so lots of so-called entrepreneurs or tycoons have wealth exceeding the due tax having been paid so far. They rarely contemplate of paying back favorable loans to almost used-up banks, paying electricity and gas. What about those employers’ irregular payment for a pension and health care contribution for each employee. Now those distinguished guys write prescription for the tough austerity measures to be imposed to the impoverished pensioners, doctors, teachers etc. That’s all you undertake to alleviate the situation in the Serbian economy

"If we do not reduce our deficit, at one point, interest rates will be such that it would be ridiculous. As happened with Greece - the interest rate was 25 percent annually, then came the bankruptcy, and in the end salaries were reduced by 40 percent," said Korunoski.

Yes, Serbia has a bloated public sector with more and more state jobs 'created' by the ruling parties given to their supportes, which is the base of most fiscal problems. Very similar to Greece.

SNS - so called Progressives need do only one thing = Progressive taxes

First 15,000 RSD per month is exempt of employee/employer contribution
Next 15,000 RSD per month at 40%
earnings above 30,000 RSD at 60%

- create a disincentive to not declaring employees through progressive taxes and enhance tax inspection and with in a year the million plus not registered as employed but in grey economy and actually working will be formally employed. Beyond which the driver in any jobs growth of SME's would be encouraged to employ more - quite rapidly Serbia's unemployment level could drop from the 30% level to close to 10%.

- overall tax employer/employee contribution collected will at worst be equivalent at best increased.

Why are the progressives not being progressive?

Miki, I think corruption in government and bloated public sector are damaging Serbia a lot more than businessmen not paying taxes. Surely, that needs to be brought under control and the grey economy needs to become integrated into the tax code. But why doesn't the federal government enact revolutionary measures on itself first and the overbearing size of government first. This would lower taxes for everyone, make it easier to get within the tax code and stop giving a reason for govt to intrude everywhere with red-tape and unnecessary taxes that hurt small businesses the most.

An interview I read recently on Blic was with a hotel owner who had the word "Serbia" in his business's name. For this, he has to pay 4, 000 EU a year because that name apparently belongs to the same corrupt leaders that have led Serbia to disaster the past decade. IDK if that was a percentage or some flat fee, but the primary problem is the gov't, not businesses.

Unless of course those businesses are owned by politicians, tycoons, drug dealers etc. Then they too are a big part of the problem.

(Miki, 6 August 2014 17:21)
Sadly, this situation is everywhere, whether you are in the US, Canada or Australia etc. The rich pay little or nothing while the rest have to carry the burden. It’s much more noticeable in Serbia because the west destroyed its economy, but don’t worry we will soon join you guys as there is a huge push to bring wages in first world countries to align with Chinese wages.

(Miki, 6 August 2014 17:21)
Sadly, this situation is everywhere, whether you are in the US, Canada or Australia etc. The rich pay little or nothing while the rest have to carry the burden. It’s much more noticeable in Serbia because the west destroyed its economy, but don’t worry we will soon join you guys as there is a huge push to bring wages in first world countries to align with Chinese wages.

A rule in a law abiding country is that every businessman has a file of a tax paying over the time he started up business. A lot of our businessmen have suppressed the truth how they have become affluent and prosperous. It is notorious that lots of criminal suspects (like Sharic) are businessmen possessing large wealth in firms, shares, yachts, a chopper, airplanes, real estate and have their children educated abroad. But, this is not a law-abiding country, so lots of so-called entrepreneurs or tycoons have wealth exceeding the due tax having been paid so far. They rarely contemplate of paying back favorable loans to almost used-up banks, paying electricity and gas. What about those employers’ irregular payment for a pension and health care contribution for each employee. Now those distinguished guys write prescription for the tough austerity measures to be imposed to the impoverished pensioners, doctors, teachers etc. That’s all you undertake to alleviate the situation in the Serbian economy

"If we do not reduce our deficit, at one point, interest rates will be such that it would be ridiculous. As happened with Greece - the interest rate was 25 percent annually, then came the bankruptcy, and in the end salaries were reduced by 40 percent," said Korunoski.

Yes, Serbia has a bloated public sector with more and more state jobs 'created' by the ruling parties given to their supportes, which is the base of most fiscal problems. Very similar to Greece.

SNS - so called Progressives need do only one thing = Progressive taxes

First 15,000 RSD per month is exempt of employee/employer contribution
Next 15,000 RSD per month at 40%
earnings above 30,000 RSD at 60%

- create a disincentive to not declaring employees through progressive taxes and enhance tax inspection and with in a year the million plus not registered as employed but in grey economy and actually working will be formally employed. Beyond which the driver in any jobs growth of SME's would be encouraged to employ more - quite rapidly Serbia's unemployment level could drop from the 30% level to close to 10%.

- overall tax employer/employee contribution collected will at worst be equivalent at best increased.

Why are the progressives not being progressive?

Miki, I think corruption in government and bloated public sector are damaging Serbia a lot more than businessmen not paying taxes. Surely, that needs to be brought under control and the grey economy needs to become integrated into the tax code. But why doesn't the federal government enact revolutionary measures on itself first and the overbearing size of government first. This would lower taxes for everyone, make it easier to get within the tax code and stop giving a reason for govt to intrude everywhere with red-tape and unnecessary taxes that hurt small businesses the most.

An interview I read recently on Blic was with a hotel owner who had the word "Serbia" in his business's name. For this, he has to pay 4, 000 EU a year because that name apparently belongs to the same corrupt leaders that have led Serbia to disaster the past decade. IDK if that was a percentage or some flat fee, but the primary problem is the gov't, not businesses.

Unless of course those businesses are owned by politicians, tycoons, drug dealers etc. Then they too are a big part of the problem.