ECONOMY

IOBE: Slash taxes, not salaries

iobe-slash-taxes-not-salaries

The minimum wage should not be reduced; instead, non-salary costs should be cut and permanent measures introduced in labor taxation and social security contributions, so as to support incomes and the economy, the Foundation for Economic and Industrial Research (IOBE) argues in its report submitted for the minimum salary assessment process.

IOBE prioritizes the use of any fiscal space for the reduction of salary deductions, especially as far as labor taxation and social security are concerned, through permanent measures that will immediately boost household incomes, the report notes, and incentivize declared employment, with an obvious benefit for the national economy and state coffers.

This week will see the completion of the verbal consultation on the conclusions submitted to the competent committee by the Bank of Greece, the Center of Planning and Economic Research (KEPE) and trade union-related labor institutes, so that KEPE and a five-member committee can draft their final report. This will be sent to the Labor Ministry, without being binding. The deadline for the ministerial decision on the minimum salary is June 30.