Petar Ilkov Peshev, Ivaylo Donchev Beev
Analysis of the Proportional Tax System in Bulgaria
Summary:
Proportional taxation with a single tax rate and the low tax rate policy intended to lower the shadow economy, increase tax revenues due the larger tax base, but also aimed to attract local and foreign investments, improving the employment situation, and finally to stimulate Bulgarian economy in the EU convergence process. Nearly a decade later empirical data allows an objective analysis of the pros and cons of tax cuts introduced in 2007 and 2008. This paper aims to provoke discussion on low tax policy implemented in in 2007 and 2008 and to analyze its suitableness and eventually to provoke a tax policy amendment debate.
