CZ Politics: The third reading of financial reforms

The Parliament should vote on planed reforms today. The proposed reforms include lowering of corporate tax from current 24% to 21% in 2008, 20% in 2009 and 19% in 2010. Personal tax should decrease to flat 15% in 2008 and 12.5% in 2009 (counted from super gross salary). New reform also includes Medicine act which contains payment for drug prescription, visit at GP and new drug categorization.

Our view:
There are 200 seats in the Chamber. Ruling coalition (ODS – Civic Democrats, KDU-CSL – Christian Democrats and Greens) has 100 MPs. Support of one coalition member is doubtful, but the reforms will be likely supported by two former opposing members. So that coalition can reach 101 in comparison with 99 opposition votes. If the Parliament approves proposals, reforms must be passed also by the Senate (ODS holds 41 from 81 chairs) and by the President (founder and former ODS head).