Reform Party head, Prime Minister Taavi Rõivas said the coalition agreement can always be improved, adding that he is not very optimistic on Social Democrat proposals which bring tax hikes.
He said the coalition, his party, IRL and the Social Democrats, will discuss the 15 proposals made by new Social Democrat Chairman Jevgeni Ossinovski.
The most expensive proposal is to increase the tax free minimum from the current figure of 154 euros to 400 euros per month. The current coalition agreement sees an increase to around 200 euros. Rõivas said he backs the idea of increasing the tax free minimum, but that the proposed cover for any hike, a 3-4 percent increase in income tax, is not acceptable.
“Choosing to tax people's income more, we would go against the policy of which we agreed just a few months ago in government – that is to decrease labor tax,” Rõivas said.
Rõivas said differences between the three coalition parties should not be over-dramatized and the three will seek to find common solutions.
Center Party MP Mailis Reps recalled that Ossinovski had promised to reopen coalition agreement talks, when elected as party head. Reps said voters want a shift to the left in government, but it will depend on how much Ossinovski dares to push the Reform Party.
Editor: J.M. Laats