- Bulgarian parliament has voted a 10% flat personal income tax next to the already existing 10% corporate rate. This is the lowest direct taxation in EU.
- Cynical pessimists comment that the budget can afford such a tax heaven because it relies mainly on parasite taxes like VAT and excise where they levy the effort regardless of the result i.e. the state has no vested interest in the economic success of the individual. That is how direct taxation is reduced but indirect tax burden is increased through excise and social security.
- Obviously the government relies on the trick that if a shadow business is tempted to come to light for the 10% tax it would also reveal a larger amount of implied transactions to be levied with VAT, excise and social security. And the balance will be devastating.
- The 10% flat tax looks like the artificial silicon breast of a lady trying to look more sexy. Yet she feels no direct pleasure from the silicon- she only enjoys it indirectly through the ecstasy of her partner.
December 2007