Progressive Income Tax Needed, Says Opposition MP
The only means to abolish huge differences of income in the society would be imposing a progressive income tax. In addition, Parliament should set an example and have MPs' salaries regulated by an independent committee, said Peeter Kreitzberg, member of the Social Democratic faction.
Kreitzberg said switching Estonia's currently flat tax rate over to a progressive system would be the only way to raise additional money to alleviate social injustice, which could be used to raise teachers' salaries and increase support for the emergency services sector.
The idea has been one of the most important points in the Social Democrats' program, Kreitzberg added. "Low taxes, the Reform Party's sacred cow, however, will put the state out of balance," said Kreitzberg.
The salaries of MPs are exempt from a general postponement of public officials' salary hikes in 2012, since the pay rise was established by the previous Parliament. Under a 2009 Supreme Court decision, the current Parliament is barred from voting on issues that pertain to MPs salaries.
Ingrid Teesalu