Social Democratic Party chairman and government minister Sven Mikser said his party's vision of improvements to the Estonian tax system differs considerably from that of its coalition partner, Reform.
“According to the principles of the Social Democrats, Estonia must move towards a more progressive tax system,” said Mikser, speaking in front of Parliament on Wednesday.
He said the progressive tax model would not only apply to the income tax but could extend to other taxes as well. He also mentioned the possibility of capital gains and property taxes.
"But naturally it's very important to hew to the principle that we have to consider people's ability to pay taxes, and we can't burden those who are in a difficult situation in terms of coping," he said.
Mikser advanced a vision of taxes as not only a revenue source but a way of shaping society's habits - both public health and more effective directing of resources - and said the "taboo" of changes to the Estonian tax system must be ended.
Mikser said the party has not ruled out a coalition with the only other party in Parliament advocating a classic progressive tax, the Center Party.
“I would have had easier coalition negotiations with a party represented by Kadri Simson than maybe with other potential partners,” he said.
Yet besides the Center Party, IRL recently unveiled a model that would exempt people earning under a certain limit from the income tax, essentially constituting a slew of micro-brackets.
However, Mikser said, the current coalition with the Reform Party has been constructive.
He said he believes his party will be in a strong position to push through Social Democratic reforms after the March 1 election next year.