Caps at risk

The business community is mostly on PM Mirek Topolánek's side in terms of his tax reform, even if some of the elements of it are very hard to swallow. The knives will really come out, though, if Topolánek messes up the No. 1 item on many businesspeople's agenda, the cap on social and health tax. And he came a step closer to this on Wed., when his coalition voted unanimously in Parliament against ČSSD's own proposal for a cap. On the surface, the dispute is economic, because ČSSD wants a cap at five times the average salary, while ODS is pushing for four times. ČSSD has shown a willingness to compromise, though, and ODS's political decision to ignore this outstretched hand is a bad sign for economic reform. When ČSSD was in power, it accepted input from ODS on bankruptcy and commercial registration. If ODS doesn't reciprocate now, it risks losing the support of business.