Vlădescu: In four years at the most, any government will see it needs progressive taxation

Autor: Razvan Voican 03.11.2010

Former finance minister Sebastian Vlădescu says the state will ultimately conclude that it needs economic levers that the flat tax cannot provide.
The introduction of a system of progressive income taxation, with deductions on certain expenses, will be an unavoidable solution for any government within the next two to four years, when it becomes absolutely obvious that the state needs certain levers in the economy.
"As long as the current social security system remains in place, one will conclude we need a progressive tax. I don't see how a welfare state can function only with the flat rate. In addition, the state's ability to sustain certain sectors, to direct funds and to use various levers has diminished so much that I think the shift to a progressive tax will come as a logical step for any government, be it right-of-centre or left-of-centre."
He anticipates this move is likely to occur by 2012- 2013.