Opposition leader: Michal government's tax changes will only add to inflation
Urmas Reinsalu, chairman of the opposition Isamaa party, told Vikerraadio that tax changes planned by the new government will add several points to inflation.
Reinsalu said on the "Vikerhommik" morning show Monday that the Michal administration's tax hikes are disproportional looking at austerity plans.
"Looking at the figures, it will be a billion in tax hikes and just €100 million in cost-cutting measures next year. This is clearly off."
Reinsalu believes a negative supplementary budget is in order in August to cut the state's operating expenses by €300 million. Additionally, cuts should be made immediately, as opposed to spreading them out over three years.
"While there is talk of confidence, the people of Estonia have been left feeling less secure. It is an administration of uncertainty. /.../ Tax hikes will hit medium and low-income earners the hardest," the Isamaa head noted.
Reinsalu stuck to his earlier calculations based on which a family with two children where the parents make the average salary stands to lose a month's wages as a result of recent and planned tax hikes.
The politician also believes that the Michal government's tax changes will postpone economic recovery in Estonia, as opposed to helping to kickstart it.
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Editor: Marcus Turovski
