World Bank suggests introducing a progressive revenue taxing system

World Bank suggests introducing a progressive revenue taxing system, in response to challenges brought to economy and society by the development of new technologies.

In addition, there is a need for labor market flexibility and social protection systems for all. This is because new technologies help polarize the labor market and increase inequalities between young people and older generations, Hans Timmer, World Bank Chief Economist for Europe and Central Asia, said today in Bucharest.

Hans Timmer:The big issue - whether we're talking about tax, insurance, pension systems - is that they do not work for people in the new economy. This means they need to be rethought, and it also means that the tax system needs to be changed, be it only to ensure financing of these changes that affect the entire population. In this regard, it can be seen that adjustments to the tax system, but also many of the policies of Central European countries, are almost exclusively addressed to older generations and people who have stable jobs, and I am not surprised that young people say: Why contribute to all these systems? Everything should be put on the table and rethought, including, in my opinion, the single tax, if we want to find a new system that works for everyone.

Source:RRA.Translated by Miruna Matei