PSD leaders are talking about capping prices for staple foods, deducting taxes for some social groups and even giving up the single tax rate.
The PSD president is considering a “resettlement” of taxes and for the time being rules out the introduction of new taxes. However, all these measures must be agreed with PNL and UDMR, before becoming law.
With an older desire to give up the single tax rate, the Social Democrats are now trying to impose their vision and introduce a progressive system of payroll taxation, on the grounds that even today there are several categories of employees who pay differentiated taxes. .
Another argument I make is that there are only a few states left in Europe where this income tax system has been maintained. Political sources say that in the first meeting of the coalition, a possible introduction of the progressive tax will be discussed. That is, the higher the tax, the higher the income.
Beneficiaries would be those with low incomes, and in the latest scenarios discussed by the Social Democrats, people who have a monthly income of less than 2,000 lei would not pay taxes.
PSD will also go to the governing coalition meeting with the proposal that basic foods, such as bread, milk, eggs, sugar, flour, have a capped price.
The Liberals do not agree with giving up the single quota
Political sources claim that the state would compensate, on the model bill to the energy, the commercial addition that the stores put, but this would also be limited.
Moreover, in the case of foods for which producers receive subsidies, traders will be required to display the addition.
Marcel Ciolacu, president of PSD: ”We need to come up with other measures, there are several fiscal measures that I think we will have to take, to present them by June 1, as we well know, the Fiscal Code must be amended 6 months before the future state budget be built on the measures taken from 1 June, with effect from 1 January”.
The Liberals have not agreed in the past with giving up the single quota.
Florin Cîțu, President of the Senate: ”We do not support and have in the government program, we do not support new taxes, the resizing of the taxation system and so on. Introducing more taxes would mean less bani on the budget, any excess of the deficit I guarantee will make inflation even higher, and where to go, to 27-28-30% inflation?”.
Consumption, the safest engine of the economy, must be encouraged
And economists argue that consumption, the safest engine of the economy, should be encouraged, and believe that higher taxes and duties would lead to evasion and thus inflation.
Mihai Roman, professor of macroeconomics at ASE: ”The first risk is to increase tax evasion. This will not lead to an increase in consumption, but to a decrease. It is difficult to say that 4,000 lei is a high salary, as long as consumption is the economic engine, it should be encouraged. Otherwise, rising inflation is encouraged”.
The PSD ministers made calculations about the budgetary impact of these proposals, which should also be agreed by the partners from PNL and UDMR.
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