EC estimates progressive taxation could bring Romania over 3% of GDP in budget revenues

The European Commission estimates that progressive taxation levied on global income in Romania, with tax rates of 6%,12%, and 18%, would bring EUR 11.8 billion in revenues to the budget, according to an analysis consulted by Profit.ro. The study does not account for the [negative] impact on employment or capital formation and GDP growth, however.

The progressive taxation scheme envisaged by the EC stipulates a 6% income tax for incomes below 33% of the average income, 12% for incomes between 33% and 100% of the average income, and 18% for incomes above average.