The debate of the type „we do, we fix, we gain nothing” about the governance program of the government without a prime minister gives PSD the opportunity for a grand electoral show dedicated to its own electorate.
The party is the only one speaking on all channels, officially and unofficially, and advocates for the introduction of a solidarity tax on all types of income, including pensions, exceeding 10,000 lei net, 17,500 lei gross. In other words, under another name, aimed at its own electorate, a progressive tax. Which is supposed to come into effect starting from January 1st.
"I understand that we need to remain among the last states. There are 27 states in the European Union. Only 4 remain with this type of taxation that we have. Romania, Bulgaria, Hungary, and Estonia. All the rest have this progressive tax. That is, from a certain threshold upwards, for high incomes, that's why we don't want to touch the low incomes, for high incomes, from a certain level upwards, there should be an extra taxation. That is progressive taxation," says Sorin Grindeanu.
There are two gross manipulations here. On one hand, even now, the one who earns more pays more. 10% of 20,000 lei represents much more than 10% of 2,000 lei.
It is true that most EU countries have a progressive rate, but they have not returned to it because they never had a flat rate. And their progressive systems are very sophisticated, involving all kinds of deductions for various expenses, such as children's education, private health insurance, etc. They have family taxes.
Moreover, they have institutions capable of managing sophisticated systems. ANAF is not able to manage the current system. What would happen with a complicated one? How much struggle for the taxpayer, how many errors? Does ANAF have the logistics to effectively switch to the progressive tax, whatever it may be called, in just 15 days? Does it have the necessary software?
The taxation system, like any public policy, is tailored to the specificities of each country. For Romania, the flat rate was a great success. It led to increased revenues, economic development, and fit very well with Romania's income system. The flat rate has contributed to the development of the middle class and, implicitly, of Romania.
PSD proposes killing this successful model, a change that will generate tax evasion and impoverishment of those penalized for working more, studying more, taking more risks.
Success becomes a fault that PSD wants to punish because this electorate is generally opposed to them.
And its traditional electorate can only be happy that the wealthy will be in solidarity with them and be fleeced. Especially since PSD puts this fleecing of the highest earners in exchange for the increase in VAT, which, isn't it?, through price increases, will affect everyone.
"If we do this, there would be no need to increase the VAT. Let me give you an example. The impact for next year. We could apply it from January 1st, let's say, for an income over 12,000 lei, the impact of, well, applying a 20% tax on what exceeds 12,000 lei, brings us an additional income of about 12 billion. It's an additional income that ensures or provides you with a safety net and prevents you from having to increase the VAT, do other things.
(...) We cannot agree, for example, to impose health insurance contributions on low or medium pensions, to tax more those with similarly low or medium incomes, to cut various things that do not bring a significant budget surplus," says Sorin Grindeanu.
The message of PSD is not conditioning entry into government on its own interests, but on the high objective of protecting the many and the poor. Behind this grand objective lie the clientelistic interests that PSD defends through all the institutions and functions that are not talked about.
And the height of cynicism is that PSD wants to deliver this blow with the hand of a PNL prime minister, during the term of a president massively elected by those who would be affected. PSD would achieve the most significant political coup in the last 20 years, revenge for 2005, at a time when it is at its worst electoral score in its history, after a string of humiliating defeats, with the weakest leaders.
And if PNL resists in defending the flat rate, PSD will inevitably throw the unavoidable VAT increase at them. And at Nicușor Dan, who just signed a guarantee that VAT will not increase for 5 years.
It is true, I don't know what President Dan truly thinks about the flat rate, but his friend Matei Păun declared it outdated, in an interview with Hotnews after the elections.
I haven't heard PSD talk about cutting expenses, about cutting bonuses, because that's where its clientele is, that's where its electorate is. There is no mention of the salary law at all, even though it's a milestone in the NRRP. Marcel Boloș stated in April that it will be postponed until 2028.
The time wasted after the presidential elections in all sorts of technical committees and commissions, without political decisions, without a prime minister, was exactly what PSD, an experienced party, needed to regroup and position itself in relation to its electorate.
Meanwhile, Romania is heading towards a dead end. On June 20, the interim of the Predoiu Government expires. Of course, an extension will be reached as the door of the Victoria Palace cannot be locked. But by the end of the month, Romania must adopt the fiscal plan to reduce the deficit, under the penalty of losing European funds. This can only be done by a fully-fledged government through emergency ordinance or, preferably, by assuming responsibility.
This dilly-dallying that only benefits PSD must stop. If it has been clarified that the deficit is not its concern, perhaps President Dan fulfills his main duty and appoints a prime minister to finally enter the serious procedure with the clock ticking for the investiture of a government.
Romania is not just a larger Bucharest, the presidency is not just a larger city hall.