Tax that damaged middle class

This law brought increased taxes for classes of low and middle incomes, and less taxes for the richer classes.

The tax increase varies from 260 ALL for the minimal wage of that time, to 1600 ALL for those who are paid 30.000. Six years have passed and now that the country is approaching new elections, the government declared that the tax for this category will be removed, despite the fact that they paid for six years more than before 2005.

What about the other classes? The first belt of the middle class, those who are paid from 40.000-90.000 ALL, are the most affected category, with taxes going to 2560 ALL each month, or more than 300 USD annually.

The tax increase continues for those who are paid 90.000 ALL each month. The breaking point was exactly for wages 140.000 and over. Those who are paid more than this are less affected by the flat tax: the higher the wage, the lower the taxes.

 For a wage of 200.000 ALL each month, the tax has increased with 2940 ALL. In this class are included MPs, Ministers and other high rank officials who have profited with 350 USD each year by the tax reduction.

It becomes even stronger with higher wages. An individual who is paid 250.000 ALL each month, profits from the flat tax with 7940 ALL each month. This is the wage for bankers, the Prime Minister, the Parliament Speaker, the President and other high rank officials, who have profited 1000 USD each year from the flat tax. These profits come only from salaries, without calculating diets and other incomes in this category.

If these are calculated, some officials such as the Bank Governor benefit from the flat tax with 10.000 USD each year, equal to the pension of 20 retired people in villages. The entire flat tax reform concluded to a final effect, reduced tax for the rich and increased tax for the middle class, which has never been protected by the government, not even this time.

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