Romanian Soc-Dem leader: We must tax capital and not labor

Marcel Ciolacu, the leader of Romania’s Social Democratic Party (PSD), which is currently part of the ruling coalition in Romania, believes that capital should be taxed higher to take some of the tax burdens off of those with low and medium income.

The statement was made in connection to a PSD proposal to tax companies with a turnover of over EUR 100 million. The resulting revenue would go to a fund that would finance projects in education and healthcare.

“There are roughly 320 large companies with a turnover of over EUR 100 million in Romania which pay an average corporate tax of 0,8%. In other words, they pay less than small enterprises, which pay 1%,” Ciolacu said, quoted by Digi24. “Labor is taxed too highly in Romania right now; we have to find a balance,” he added.

Still in negotiation within the ruling coalition – and facing strong opposition from the center-right National Liberal Party (PNL) – the Social Democrats’ so-called “solidarity tax” would amount to 0.5% or 1% of the company’s turnover.

According to finance minister Adrian Câciu (PSD), this would result in extra revenues to the state budget of 1,2-1,5% of the GDP.

(Photo: Marcel Ciolacu Facebook Page)