The 10% flat income tax that was announced in principle by the ruling coalition in the end of July 2007 is one of the best decisions so far made. The mixed reactions in regard to flat tax idea are a consequence of several constellations.
"Economic Policy Review" Bulletin ISSN 1313 - 0544
Obviously ruling coalition politicians’ lack of other original pre-election ideas (local elections take place this autumn) just after they proposed 10% flat income tax. What they are now employing in their campaign is nothing but pure populism – promises for lower consumer prices through price control measures could not be anything different.
Electronic invoicing became mandatory in Denmark on February 1st, 2005. All former paper-based invoices sent to government on all levels, from large agencies to nursing schools, are now managed electronically.
In august 2007 there was a discussion in Bulgaria for the possibility of opening of the State Reserve and supplying the market with wheat at a lower than the market price. Realization of this measure was deterred for now because it should be approved by the European Commission at first. The so-called Intervention Agency, that is a part of the Common Agricultural Policy of EU, aims to „correct“ prices of agricultural products during periods of low prices (due to excessive supply) or vice versa and it operates in the period November 1st – March 31st.
The hassle, incited by the possible introduction of a flat tax, has diverted the public's attention from noticing the excise duty measures that the government plans on implementing in the next two years. “Europe says so” is one of the favorite excuses of the governing coalition to justify a painful policy that is on the way of being conducted.