Basescu: "As long as I am President, the flat tax stays"

The flat tax will continue to be in effect for the coming five years and three months, if Traian Basescu is reelected President, or at least three months, if he is not reelected. This is the promise he made Wednesday night on the TVR channel, adding that he has not yet decided whether or not to run for President.

In promising to retain the flat tax, Basescu is speaking in the name of the Government and Parliament, the institutions which are normally responsible for such a decision. A similar situation cost U.S. President George Bush his second term.

"Read my lips: no new taxes!" was the message that helped Bush win the 1988 elections, while two years later, he was forced to raise taxes due to the unsustainable budget deficit, pressured by the Democratic majority in Congress. "Read my lips: I lied," was the New York Post headline the following day. Bush's popularity began sliding, and in 1992 he lost the elections to Bill Clinton.

"We are not considering tax increases, and a rise in the flat tax or VAT [value-added tax] should normally be announced six months before," said Dragos Doros, Head of the Legislation and Direct Taxes Department of the Ministry of Public Finance.

standard.money.ro