PSD „clearly supports” progressive taxation as a „fair and sustainable” alternative to the VAT increase, with care for the vulnerable and respect for the business environment, declared on Monday Social Democratic MP Marius Budăi, former Minister of Labor.
„Progressive taxation – balance between social responsibility and support for the economy! PSD clearly supports progressive taxation as a fair and sustainable alternative to the VAT increase, with care for the vulnerable and respect for the business environment. Such a system is not against the business environment, but in support of a healthy, competitive and inclusive economy. Entrepreneurs need stability, trust and customers who can afford to buy. It is time to move from emergency measures to responsible, fair measures, built with empathy and vision. Romania needs fair tax solutions that do not put even more pressure on the shoulders of those with low and middle incomes,” Budăi wrote on Facebook.
He considers that the VAT increase was „a harsh measure”, which affects those categories that feel every lost leu most acutely.
„Progressive taxation, already applied in most developed countries, represents a more balanced option: it respects everyone’s ability to contribute, without stifling the economy, protects domestic consumption, vital for small businesses, supports a fairer redistribution of resources, with care for the vulnerable, and responds to the recommendations of the European Commission and international experts. Progressive taxation is not only a recommendation from the European Commission and other international financial institutions, but also a widespread practice in all developed countries in the European Union. This reflects an essential economic and social principle: the fairness of the contribution according to financial capacity,” says Budăi.
The PSD deputy also states that in a difficult economic context, Romania would have had much more to gain if it had opted for implementing a progressive taxation system, instead of resorting to increasing VAT – „a regressive measure that disproportionately affects the population with low and medium incomes”.
„The decision now to resort to harsh fiscal measures, such as increasing VAT, was justified by the urgency of maintaining the country’s rating. However, choosing this solution to the detriment of the progressive tax will generate significant social costs and will disproportionately burden the population that is already feeling the economic pressure. In the context in which the PSD expressed its reservations about some measures, but could not block the fiscal package as a whole, it is all the more clear that a serious discussion on progressive taxation is necessary. We, the PSD, maintain that progressive taxation represents a preferable alternative, both from an economic and moral point of view. And if we were saying at the beginning that it is time to move from emergency measures to responsible, equitable measures, built with empathy and vision, I firmly believe that it is time to correct unjust and unnecessary decisions such as the CASS for social security benefits. mothers, war veterans or former political prisoners,” Budăi concludes.
AGERPRES
