Analytics, Estonia, Financial Services, Pensioners, Taxation

Chairman of the Confederation of Trade Unions Harri Taliga, on the other hand, that the only objective of the maximum social tax rate is to decrease employers’ tax burden.

“This will by no means improve employment rate nor bring high-paid jobs to Estonia,” asserted Taliga. “These will only emerge where more added value is created. And if the added value is created, the new jobs will appear anyway,” he said.

The trade unions’ leader emphasised that the generally recognised position is that in promoting employment rate, low-paid people’s tax burden should be lowered first and foremost.

Taliga said that the positions articulated in the employers’ manifesto were “brutal”, with the objective to significantly decrease the level of social security. “The most significant fact is naturally that employers do not want to pay for anything. The State has to lower taxes and increase investments into businesses and to re-training unemployed persons,” he noted. “Where will the money come from if the taxes are decreased or there are no taxes whatsoever?” asked Taliga.