Biris (AOAR): Work overtaxation has hindered middle class development

Work overtaxation has put a break on the development of the middle class, Gabriel Biris, a member of the Steering Board of the Romanian Businesspeople Association (AOAR), told the conference "Proactive measures to strengthen local capital and the middle class" on Thursday, adding that he was referring to social contributions, not the income tax.

"They have never been taxed 40 pct, less dividends. We don't take issue with the income tax, but with social contributions that have already been introduced in the Tax Code. The measures that had our backing for the purpose of clarification and regulation were introduced in the Tax Code, they are payments based on the principle of solidarity. But solidarity cannot apply just one-sidedly and limitlessly. Speaking about social contributions, it is very important to cap the calculation base for these contributions and also that the benefits collected as a result of the contribution are limited," Biris told a press conference.

"What will happen in a few years, when the 30,000 employees who are now paid over 5 average salaries, some of them maybe even 30 — 40 average salaries, will retire with brazenly high pensions, because they will receive 30-40-50 retirement points? It will be our children who will support these 30-40-point pensions. Capping the calculation base for social contributions concomitantly with the grid settlement is highly important for today, tomorrow and for the future, and it must be done. Unfortunately, early this year, although health care contributions had been capped for the first time, the measure was subsequently scrapped. This does not help stimulate investments, and neither helps bring wages to the light," Gabriel Biris said.

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