PSD requests additional taxation of large fortunes

C.D.

The Chairman of the National Department of the Social Policies of the Social Democratic Party (PSD), deputy Ioan Cindrea, yesterday announced that his party would request the elimination of excessive pensions, including the pension of members of the Parliament, and said that PSD also supports the recalculation of special pensions, and the introduction of additional taxation for large fortunes.

He explained: "As chairman of the National Department of Social Policies, I will present an official point of view on the special pensions and the Government"s intentions to elaborate a unified pension law, and a unified formula for determining pensions. PSD feels that recalculating all pensions based on a single law, including the pensions of members of the Parliament, is an act of social fairness".

According to Agerpress, Ioan Cindrea mentioned the four guidelines of the future law: the elimination of excessive pensions, the setting of a ratio between the minimum and maximum pension, (similar to the 1/16 ratio for salaries set by the unified salary law), accelerating the growth of small public sector pensions and correlating the minimum guaranteed pension and the minimum European pension.

Cindrea announced that PSD would identify additional revenue sources for the social security budget. For the first time, a representative of the PSD launched the idea of introducing additional taxation on very large fortunes.

Ioan Cindrea explained: "We are seriously considering suggesting a tax on large and very large fortunes. There are countries in Europe where people pay additional taxes in the case of large fortunes. In France, for instance, people whose fortunes exceed EUR 750 000 are required to pay an additional tax. PSD will propose the introduction of such an additional tax".

The social-democrat also mentioned that the leaders of the PSD, and the PD-L-PSD coalition, are discussing "a deep reform of Romania"s pension system".

Cindrea believes that the taxation of large fortunes will target mostly people in Top 300 Capital.

The social issues advisor of the Prime-Minister, Mihai Şeitan, said on Tuesday that the special pensions would be recalculated starting 2010.

Şeitan said that the special pensions would be recalculated through the new pensions law, based on their contributions to the public pension system.

According to Şeitan, this possibility was discussed in a government meeting last week, and the recalculation would target around 200 000 people.