Progressive Taxation in Romania - An Analysis by Scenarios

Abstract

The regional geopolitical tensions, the changes in the regional markets of energy products and food that led to the increase of prices and the stagnation of economic growth at the level of the European Union highlighting the need to review the management of public policies. Thus, under the pressure of growing public and private debts, under the pressure of budget deficits, the fiscal policies of the EU27 states often have the unpleasant task of making substantial reforms of the taxation systems. Therefore, the article proposes the construction of a series of scenarios regarding the possibility of returning to the progressive taxation of the payroll tax in Romania. The article tries to highlight the advantages and where benefits can intervene for the structure of the national budget starting from the analysis of a series of scenarios regarding the progressive taxation of salaries and proposals are outlined in this regard.

Keywords

• salary tax
• income inequality
• personal income tax
• progressiveness