Tax debate turns partners back into adversaries

  • 2003-01-23
  • Steven C. Johnson
TALLINNPrime Minister Siim Kallas warned last week that a progressive income tax championed by his government coalition partner would bruise Estonia's business-friendly reputation and drain millions of euros from the budget.Speaking six weeks ahead of the March 2 parliamentary election, Kallas said his right-wing Reform Party was firmly opposed to the proposal from the Center Party, which wants to scrap Estonia's 26 percent flat tax rate and introduce a graduated tax based on income level."A progressive income tax represents the very kind of economic thinking we don't support," Kallas told ...
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