Ten Years Flat Tax in Bulgaria, International Conference

The implementation of a flat tax without a taxable minimum in Bulgaria benefited the high-income groups by providing them with an additional resource of personal income, practically canceling the obligation, traditional for the European Union, of the wealthy strata to take a higher share of the state budget to support the public service sector the state's social costs. Flat tax has deepened inequalities and instead of an expected stimulus it has become a brake on market competition and growth. The introduction of a flat taxation conflicts the practices and recommendations of international financial institutions and the European Commission for anti-crisis strategies.