Tax Hikes in Romania: Will They Increase Evasion?

Romania: Tax Hikes Could Backfire, Leading to Increased Evasion, Expert Warns Romania is considering significant tax increases, but a prominent political commentator warns this could backfire. Robert Turcescu, appearing on Dan Diaconescu Direct, argues that higher taxes will likely drive up tax evasion. He points to a past calculation by former Prime Minister Victor Ponta as evidence that the government's predictions may be optimistic. "Higher taxes will lead to greater evasion," Turcescu stated, "People will find ways to avoid paying more." This raises concerns about the effectiveness of the proposed tax reforms and the potential impact on government revenue. The debate highlights the complexities of fiscal policy and the need for careful consideration of unintended consequences.