Income Taxes in Electoral and International Context



The article covers the debate on personal and corporate income taxes in the last two years. One important characteristic of the discussion is that since 2018 IMF has become a key advocate of progressive taxation and that large international companies, typically expected to oppose tax increases, now publicly approve such reforms. In 2021, the G-7 finance ministers also joint the choir of progressive and increased corporate taxation. The article makes an attempt to expose the economic and political rational of the IMF and OECD proposal (in the first part). The second part summarizes the historic background of the income tax debate, while the third comments on the most popular idea of a tax reform in Bulgaria – the introduction of a non-taxable threshold of income. The forth part deals with the recent G-7 contribution to the debate derives conclusions.