PSD member Viorel Hrebenciuc: PSD to support 16% tax

The way Social Democrats (PSD) stand right now, I think the party will support the introduction of the 16% flat tax, PSD member Viorel Hrebenciuc declared in the weekly HotNews.ro – BBC debate with Dan Tapalaga on Sunday. At his turn, governing Liberal Party (PNL) member Bogdan Olteanu declared that the Liberals will ally with parties supporting the same fiscal policies. Hrebenciuc declared that President Basescu will not be able to ignore a party alliance capturing 70% of the Parliament.

The flat tax rate was one of the most important electoral campaign themes in 2004 and Social Democrats opposed it, arguing that the 16% tax advantaged the rich. However, Social Democrats supported progressive taxing thus poor people would have to pay lower taxes while the rich, bigger as their profits increase.

PSD member and informal leader Viorel Hrebenciuc declared that there was a pressure to maintain the current tax system. He added that Social Democrats could not afford to lose the support of busisness people.

At his turn, Democrat Liberal Valeriu Stoica said that it was the first time he heard a Social Democrat arguing this. He added that it would be a happy case if all parties would support this policy.

When talking about future political developments, Hrebenciuc declared that President Basescu would most surely want to reshuffle the government in 2009. He declared that the President would not be able to oppose a 70% majority in the Parliament.

Contrary, PD-L member Valeriu Stoica said that since no party would be able to gain a majority of votes, the main actor on the political stage will be President Basescu. He added that the President, according to his constitutional rights, will be entitled to ask any party to form a government. Stoica added that Democrat Liberals had lots of options for a possible Prime Minister, in the persons of Theodor Stolojan or Adriean Videanu.

After the June local elections, Stoica declared, at least three coalition scenarios can be computed: Social Democrats and Liberals, Social Democrats and Democrat Liberals and Democrat Liberals and Liberals. Hrebenciuc adds to this a possible Social Democratic government, without any other parties.