Value added taxation has many shortcomings which, together with high tax evasion, limit the necessary development of not only Czech social security. The reform of the "first generation" value-added tax in the EU will not be easy, the biggest obstacle is lobbying. The optimal option for the reform is to replace this tax with a wage tax and a broadly conceived taxation of corporate and self-employed income (business tax); both can be merged with the current taxation of personal and corporate incomes, including employer social security contributions. Taxation substituting the value-added tax in the financial sector should be introduced also in Czechia, without delay. The aim of the article is to kick-start these reforms, with extensive support of the scientific literature.