Rõivas: IRL's Progressive Tax Scheme More Complex Than Center's

Prime Minister Taavi Rõivas (Postimees/Scanpix)
9/10/2014 4:21 PM
Category: Politics

PM Taavi Rõivas said former coalition partner IRL's tax break focused on median wage-earners is a form of progressive taxation that is even more complicated than the tax reforms proposed in the past by the othert opposition party, Center.

While Center is traditionally most associated with the progressive income tax, it was IRL - many of whose founders came from a Friedmanite economic tradition and have in the past championed a flat tax in its purest form - who made waves in late August by proposing a higher tax-free minimum that was just a little more than that.

Under the plan, all people making 500 euros and less a month would not have to pay income tax, and those making up to 846 euros would have a lower, graduated rate.

"The question is whether we should effectuate an infeasible idea. Even Center, which has tried to explain to us for decades that the progressive income tax is a very good plan, has not managed to think up anything as complicated as IRL has no done. Several hundred tax brackets!" said Rõivas in question hour in response to a question from IRL MP Sven Sester, who site on the Finance Committee.


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