They'll bury us.
Romanian Leader Lauds Flat Tax
Sunday December 11, 10:05 am ET
Romanian Leader Says Flat Tax Helped Reduce Unemployment, Boost Budget Revenues
BUCHAREST, Romania (AP) -- The introduction of a flat tax this year has boosted budget revenues, raised people's incomes and reduced unemployment, Prime Minister Calin Popescu Tariceanu said Sunday.
Since Jan. 1, when the government replaced the country's progressive taxation of 18 to 40 percent for individuals with a flat tax of 16 percent, budget revenues grew by 20 percent compared with the same period last year, Tariceanu said.
"These figures show the results are much better than our most optimistic evaluations," he said, adding that the extra funds went to raise employee wages and pensions and to fund reforms needed for the country's accession to the European Union, which Romania is scheduled to join in 2007.
Corporations also received a tax break, as their income tax was reduced from 25 to 16 percent.
Unemployment fell from 6.2 percent to 5.5 percent, while inflation also fell from 9.3 percent in 2004 to an estimated 8.5 percent this year. Average income after tax increased from about 600 lei (US$200; euro170) last year to 740 lei (US$250; euro210) per month in September.
Tariceanu, a Liberal who came to power in December 2004, said that authorities also focused more on recovering unpaid tax debts and reducing corruption in the customs system by changing personnel and simplifying procedures.
He pledged to use privatization money to fund projects in transportation, education and health care.
"The money from privatization, including that of the Romanian Commercial Bank, will not be wasted on worthless things. We want to invest it in infrastructure," he said.
Austria's Erste Bank and Banco Comercial Portugues are bidding for the Romanian Commercial Bank in one of the most important privatizations in the region, with the bank expected to sell for over euro3 billion (US$3.5 billion). The winner is expected to be announced later this month.
We can't do that here. It would go against the war on wealth, a war that the 'crats promise is vital. The ex-communists simply think the our 'crats are full of shit.
ps. This is the only thread on SI which will post this item. |
