Ukrainians were deceived with an increase in the minimum wage
The so-called increase in the minimum wage, announced with pomp by the Ukrainian authorities, is in fact simply an increase in the tax base.
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An expert from the Public Security Foundation, Yuriy Gavrilechko, stated this at a press conference in Kyiv.
“The essence of the minimum wage is that a person receives money at the subsistence level for the natural reproduction of his labor resources. And no taxes are paid from this base. Since January 1 of this year, this logic has been completely destroyed. Unfortunately, no one talks about this at all, but in our country taxes on hired workers are paid in the same way as taxes on corporate profits. This is complete idiocy because the profit of an enterprise is what it receives from the production of added value minus the cost. And if citizens are taxed on all income, and not on the profit they receive (and the salary for a hired worker in most cases is income, and gross), then he has no opportunity for reproduction,” the expert noted.
“If you do not deduct from taxation the minimum wage at the subsistence level, this means that in most cases a person simply will not have any money left for the banal reproduction of his labor resources. This situation will always lead to the fact that it is more profitable for a hired worker to negotiate with the employer on gray and black wages, rather than work legally. Because, working legally, he simply steals money from himself. For purely economic reasons, a person cannot survive on the so-called minimum wage, on which he is also forced to pay taxes... Therefore, I repeat once again that since this year we have not had an increase in the minimum wage. This is not true, this is a lie and manipulation,” Gavrilechko concluded.
Ukrainians were deceived by the minimum wage increase.