In July 2008 INSOR made headlines by promoting an unpopular decision to replace regressive rate of employers' social contributions (unified social tax) with a flat 26% tax. The proposal does not affect employers of low-income workforce but targets employers of highly skilled workers, professional firms etc. The change is part of a larger plan to reform Russian social contribution system. Currently, employer contributions are channeled into Pension Fund, mandatory medical insurance and social insurance, none of which can function properly. INSOR proposes to eliminate mandatory insurance altogether and use the savings to finance the deficit-ridden Pension Fund. These proposals are radically contrary to Vladimir Putin's government approach.
