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