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A new social security tax is offered by the Greek unions

13 February 2010 / 15:02:31  GRReporter
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An additional social security tax was suggested by the confederation of the Greek workers and employees. The Unions gave this suggestion as a temporary solution to the problem with the empty governmental social security funds until it is prepared and enacted effectively the reform in the social security system which the Ministry of employment and social security promised to introduce. An example for the spread of the crisis in the social security is the fact that in 2009 the Greek government borrowed 2,47 billion euro in order to fill the gap in the social security funds and to pay the pensions and the social welfare.

The purpose of the new tax is to collect capital which will be used for the payment of pensions and social securities when the governmental resources are completely drained. According to a research carried out if additional changes are not introduces in the structure of the social security in 2015 Greece will not be capable of paying pensions and social welfare. According to the suggestion of the organization the additional tax will be collected as a percentage of the turnover of profit making governmental corporations, from successfully privatized governmental companies, a percentage of the value of the real estate property according to the principle of the inhabited house duty (which will include also the real estate properties of the church), as well as a percentage of the income from fines and charges in cases of violation of the law and proven corruption activities. Other sources of capital according to the unions for the collection of the “social security tax” will be though imposition of a new additional tax on the high income as well as on the profit of capital interests of big companies etc.

From the confederation underlined that they are talking about redirection of resources and this will be an additional measure of temporary nature. According to experts currently the “social security tax” is successfully applied in France where a special fund is created which will remain closed for twenty years and the funds will only be used in case of a collapse of the social security system. The question regarding the application of an additional tax measure is discussed by a working group in the Ministry of employment and social security.

Tags: Economysocial security Society
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