Solidarity tax and progressive tax, PSD priorities for supporting budget spending

PSD does not give up on the idea of establishing a solidarity tax and introducing, after the digitalization of ANAF, the progressive tax, said Petre Florin Manole, the spokesperson for the social-democratic political party, yesterday.

Petre Florin Manole stated: "First of all, PSD will not agree with any of the proposed measures that may result in economic stagnation or recession. The second thing is that we will not agree with any of the measures that place a burden on the shoulders of some of the most needy or on the shoulders of the middle class in this country."

He stated that there are measures to reduce incomes that PSD does not agree with - especially those that affect the population. However, he made a clear distinction between harmful and legitimate measures: "Those measures that involve a decrease in income from the boards of directors, that kind of thing are legitimate measures that we agree with. The kind of investments like the Moldovan Highway must continue. Increasing the gambling tax is legitimate and it is a measure that we support. A reduction in bonuses can be made."

Along the same lines, Petre Manole stressed that "cutting bonuses is a discussion that has already been agreed in principle" and "legitimate", even if the budgetary impact of this measure is relatively small. He also indicated that subsidies for parties "must be reduced", specifying that the PSD would be willing to give up, for example, the amount intended for TV contracts.

Regarding the solidarity tax for high incomes, applicable in both the public and private sectors, the PSD spokesperson stated that it would target incomes over 10,000 lei and would be part of a broader vision of fiscal equity. He also specified that the PSD would present calculations regarding the impact of applying a progressive taxation system, which is to be implemented once the ANAF digitalization is completed.

In fact, yesterday the Social Democratic Party sent a press release reaffirming its positions and red lines, insisting that it will not support measures that would negatively affect the economy or the vulnerable population. According to the cited document, the PSD rejects the idea of introducing a tax on banking transactions, considering it a counterproductive measure that could discourage the use of digital means of payment and fuel the phenomenon of tax evasion.

At the same time, the Social Democrats do not support the extension of the application of the social health insurance contribution (CASS) or the increase in income tax, measures that would negatively impact low and medium incomes. The party also does not accept the idea of collecting a fixed amount from pensions under 3,000 lei, considering that these social categories should be protected, not penalized.

The PSD also rejects any proposal that would mean stopping infrastructure projects or blocking productive investments. Development, the political party states, must continue, and projects such as the Moldovan Highway are considered essential for the modernization of Romania. Prioritizing investments is necessary, but this should not lead to the abandonment of projects already underway.

The party also rules out any increase in the general VAT rate, as well as an increase in the reduced rate for food and medicines. Such measures would directly affect the population, especially vulnerable categories.

At the same time, PSD firmly opposes the cancellation of tax benefits granted to vulnerable people, such as people with disabilities, beneficiaries of the guaranteed minimum income or large families. Regarding agriculture, the party rejects reducing subsidies or restricting farmers' access to these funds, underlining the strategic importance of this sector. Another sore point targeted by PSD is the rejection of increasing excise taxes on fuel, which would have an inflationary effect and would put pressure on productive sectors such as industry and agriculture.

All these measures, considered unacceptable by PSD, contradict the principles that the party announced since the beginning of negotiations for the formation of the future government. In contrast, although PSD talks about reducing budget spending, eliminating waste and a fair distribution of the tax burden, it wants to introduce new taxes: solidarity and progressive tax.

George Marinescu