Labor tax reduction, the main request of the NBU

The reduction of the labor tax was the main request of the protest organized, yesterday, in Bucharest, by the members of the National Trade Union Bloc (BNS/NBU) which took place along the route Piaţa Victoriei - Ministry of Economy, Entrepreneurship and Tourism - Ministry of Labor and Social Solidarity - Ministry of Finance. Thousands of employees, members of the 29 trade union federations affiliated with the BNS/NBU, demanded respect for those who work and stated that they no longer want to be guinea pigs of fiscal experiments.

The theme of the NBS protest is an old one, which has been kept current for the last four years by the USR, which, through the deputies and senators it has in the Parliament, has repeatedly asked for zero taxes and taxes for the minimum wage in the economy, incomes exceeding this salary threshold will be taxed and charged.

However, instead of supporting the theme floated by the USR, those from the National Trade Union Bloc thought that it would be better to take to the streets now, before the European Parliament and local elections, on the principle that "it can't be like this anymore", after for four years they could and let the opposition politicians run their alms through Parliament.

However, unlike those who propose zero taxes on the minimum wage for the economy, the leaders of the National Trade Union Bloc demand the taxation of capital, as can be seen from the message published yesterday on the trade union confederation's website: "Employees in Romania assume the responsibility of financing the public budget, by reporting to GDP similar to the European average. On the other hand, for employers, but also for other categories of people who obtain incomes, other than those from work, the situation is similar to a tax haven".

The solutions proposed by the trade unionists are identical to those discussed last fall by the Ciolacu government: the abolition of the single quota with the transition to a progressive tax and the over-taxation of capital. Both are budget consolidation solutions offered by Prime Minister Marcel Ciolacu, who, by the way, declared himself a fan of progressive taxation.

Dumitru Costin, the president of the National Trade Union Bloc, said yesterday in Piaţa Victoriei: "If they come again to tax labor additionally, we will have a problem and they will have a bigger problem with us. We want to see what they think about the taxation of capital, wealth, and the level of royalties. Consider that, on average, they are three times lower than the European Union average. (...) Why are we protesting in an election year? Because it is the only year in which power in democracy is shared. It descends from them, who had it for four years, to the citizens. It is extremely important that people understand what they are voting for, how they are voting and what solutions they are preparing for the next four years".

According to the data presented by the NBS, our country 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 tax burden being represented by social contributions levied for financing 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 well over 50%, a percentage that represents the maximum burden provided by the Convention of the International Labor Organization and the European Social Security Code. The trade union confederation also shows that last year in our country out of the 7.7 million citizens who had a job, 5.6 million paid social insurance contributions.