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Overtaxation and progressive tax, two false topics of debate at the moment. How can the budget imbalance be corrected?

Overtaxation and progressive tax, two false topics of debate at the moment. How can the budget imbalance be corrected?

Daniel Anghel, Partner and Leader of the Fiscal and Legal Consulting Department, PwC Romania

The overtaxation of "high" salaries is a false topic, as is the whole discussion about progressive taxation. First of all, the circulating overtaxation does not make economic or social sense: it would not bring revenues to the budget that would at least partially solve the difficult situation of the deficit, nor would it generate equity between taxpayers, as long as a threshold is arbitrarily set without any economic modeling for to justify it.

For more information, please see the Romanian version of the article, here.

 

 

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