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