The collection of signatures for the introduction of a progressive income tax has begun on the public initiative portal Manabalss.lv, reports LETA.
In three weeks since the start of the collection, the initiative has been signed by one person.
The author of the initiative is Alexander Lebedev. He notes that currently in Latvia, a flat income tax rate is applied regardless of income level. This increases inequality, reduces public trust in the tax system, and limits the government's ability to finance social programs, healthcare, and infrastructure.
The author of the initiative proposes to introduce a progressive income tax: 20% for low-income individuals, 25–30% for middle-income individuals, and 35% for high-income individuals. In his opinion, this will make society fairer, the budget more stable, and social inequality lower. It is also proposed to introduce benefits for families with children and low-income individuals to protect those with low incomes.
According to Lebedev, such a system will ensure fairer taxation, where high-income individuals will pay more, and low-income individuals will pay less. This will provide more stable budget revenues, allowing for the financing of healthcare, infrastructure, and social programs.
Furthermore, he believes that a progressive system will strengthen public trust in government, reduce inequality, and stimulate economic activity, as lower tax rates for low-income individuals will increase their purchasing power. Overall, Latvia will become fairer, more cohesive, and economically stable.
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