Saturday Visits and a Big GOOF

Saturday we visited with Lyuda and her family (pictured below). They live in part of a small house in Nivki region near our church building. Lyuda has been a strong member of our church for several years. Recently we learned they don't live in very good conditions and my family in Tennessee agreed to try to help them in some way. So far, they've raised almost $3000 to help do so much-needed repair work. We went to check out the situation today and they had prepared a very nice lunch for us. They had even bought 1 liter of vanilla Coke for me. (I don't really like vanilla Coke--I am a Cola Lite fan.) But their hospitality was generous. Both are retired but both still work since it's impossible to get by on a pension in Ukraine. We spent the rest of the day tromping about Kyiv in the rain looking for building materials. Always fun.

The big GOOF award goes to the current government. In my opinion, it's their first and it's not too late to correct. Here's the problem: taxes in Ukraine are so high people have become very creative in not paying them. One loophole that many have relied on is by forming a private company with one employee. You are then hired by another company to work for them. You then only have to pay about $40 a month in taxes, a flat rate, instead of up to 60% of your income. The new government suddenly cancelled that option and now, starting July 1, these people will have to pay around 40% of their income in taxes (down from the 60% that it used to be). Obviously, people won't pay that and they will into the shadows, where much of Ukraine's economy resided. Instead of developing a graduated change or giving some warning, the government just passed a stupid law that won't in any way increase revenue. Small businesses are outraged since most have hired employees this way since they can't afford the enormous tax burden. Yuschenko is saying they will take a look at it. What a mess.