Bulgarian – poorest will suffer from the Flat Tax

Posted on

The Sofia Echo reports that:

Salaries of nearly 1.2 million people would decrease after the introduction of flat rate tax in Bulgaria, according to the Confederation of Independent Trade Unions in Bulgaria.

Labour and Social Policy Minister Emilia Maslarova agreed that there was a real possibility for employees in some industries, such as textile, agriculture and food in the private sector, to see their salaries decrease.

These are in Bulgaria, as just about everywhere, the poorest paid in society. Which is yet more evidence, if evidence were needed that flat taxes are not equitable.

But let me be clear: Bulgaria needs tax reform to tackle its endemic corruption. It could have it. But combining that reform with just one tax rate is the mistake. There is no need for that.

Tax simplification and progressive taxation go together. Tax simplification and single rate flat taxes are a recipe for injustice and the reallocation of wealth to the richest in society.