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Ganev, Petar
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2 articles of this author have been cited in the European Press Review so far.
Bulgarian flat tax must remain
In view of the budgetary collapse that has hit Bulgaria as a result of the crisis, politicians and special interest groups are calling for the abolition of the flat tax of ten percent in favour of higher or progressive taxation. Economist Petar Ganev argues for the flat tax in the daily Sega: "The flat tax is not to blame for the current budget situation. On the contrary: in budgetary terms it was the best reform measure in recent years. The arguments of its opponents are worthless. ... They want to interfere in our lives and redistribute our money, punishing some people to the benefit of others. This way of thinking is parasitical. Practically no one likes to pay taxes, but people have demonstrated that they prefer the flat tax to its alternatives. The proof is that provided taxation is simple, easy to understand and low, more people pay their taxes and will go on doing so. Raising the flat tax would be taking a step in the wrong direction, because it would make people less willing to pay their taxes."
» full article (external link, Bulgarian)
More from the press review on the subject » Fiscal Policy, » Economic Policy, » Tax Policy, » Bulgaria
The grey market in Bulgaria
Dnevnik newspaper looks into the reasons for the persistently large "grey" markets in Bulgaria. "The reluctance of workers (and employers) to pay taxes on everything they earn results from the huge insurance burden. Despite the low flat-rate tax, most people do not correctly indicate their income [because of the high social insurance contributions]. ... The minimum insurance rate (and the corresponding minimum wage) stimulate tax evasion. Company managers know that the state views low incomes as normal, and that makes it easier to commit tax fraud. In fact a large number of employees earn much higher salaries. On the other hand, raising the minimum wage would have catastrophic consequences, such as boosting unemployment and further expanding the grey market."
» full article (external link, Bulgarian)
More from the press review on the subject » Health Policy, » Economic Policy, » Bulgaria
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