Call for tax break

  • 2009-02-25
It looks like the Lithuanian economy is still in freefall, like its neighbors. I'm glad the Lithuanian government will be implementing a loan program for small businesses. I run a little audio store in Vilnius. Our business has decreased markedly over the past few months. Maybe I'll need a loan by this summer.
But one thing I don't understand is why the government doesn't try to get rid of the flat tax and replace it with a progressive income tax. All the countries in Europe with the flat tax are in the biggest trouble 's Iceland, Estonia, Latvia, Lithuania, Ukraine, Romania.

I don't think introducing a progressive tax would hamper our economic recovery. The Americans, French and British all use the progressive tax system, as well as our Scandinavian neighbors.
Kubilius talks about how he wants to take on the oligarchs 's a progressive tax seems like a great way to do that. So is the government afraid that rich people would not pay?

Maybe they wouldn't, which reminds me of what President Adamkus said in his speech last week, that Lithuania's biggest problem is a "lack of national ambition."
In the great, powerful countries of the world the wealthiest are willing to pay a bit more on their income tax than the supermarket clerk or struggling small business owner. But are they willing to do that in Lithuania, so we don't have to have an increased VAT that is choking any chance of economic recovery?

Mindaugas Sakalauskas,


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