PSD wants 4 tax brackets, PNL wants 10% flat rate

The introduction of four income tax brackets, 0%, 15%, 25% and 40%, is the main measure of fiscal reform being considered by PSD in the draft ruling programme, which is set to be approved as a political alternative at the October 16th Convention.
If they came to power, the social democrats would combine the differentiated income taxation with a scheme of deductibilities mainly meant to encourage contributions to private health insurance and pensions systems.
The natural rejection of a system of differentiated taxation among high-income earners is set to be toned down by a reduction in the corporate income tax to a yet to be decided level.
PSD's draft programme clashes with the option of the PNL (National Liberal Party), the second major opposition party, which would retain the flat tax system, or even cut it from 16% to 10% for an unspecified period of time.
The liberal ruling programme, approved by the PNL leadership this week, displays a completely opposing view to PSD's - which is important, considering that a collaboration between the two parties in a future government has been repeatedly mentioned as a possibility.
In fact, what the PNL denounces and wants to correct through its adopted programme is precisely the "welfare state" that the liberals claim PDL is promoting, and PSD wants to strengthen. In fact, the number of people collecting welfare has doubled over the last six years, four of which were under PNL rule.