The Solution To The Lump Sum Tax Economics Essay

Abstraction: From the multiple minutes of the European history of revenue enhancement, from the creative activity of the European provinces, to the recognition of the financial rights of all the citizens of these provinces after the Gallic Revolution from 1789, from the economic crisis during the period 1929 – 1933, to the financial policy of the Second World War, extended through the wide debut of the VAT on the European degree, about all of them represent important stairss towards a globalisation of revenue enhancement within the European Union centred on common policies sing the direct revenue enhancements ( the directive sing the mergers, the directives refering the subordinates, the directives sing the involvement and dividend payments ) and on the indirect revenue enhancements ( the 4th directing refering the value added revenue enhancement and the imposts brotherhood ) . The present article attempts to cover merely three cardinal historical minutes on the national degree, selected among the multiple facets specific to the Rumanian revenue enhancement, with an accent on the creative activity of the State, on the Organic Regulations of 1831 ( testimonial ; Ro. patenta, a revenue enhancement paid for a certain trade or industry ; indirect revenue enhancements ) , on Cuza ‘s Reform of 1859 ( land revenue enhancement, the riddance of the financial privileges ) , on the Revolution of 1848, with the catholicity of its averment, for the period 1921 – 1933, as one of the greatest financial reform in Romania, on the absence of some market mechanisms that evidently reduced the impact of revenue enhancement, or on the passage period and the on the period of implementing the community acquis. These three historical minutes or periods are the Phanariote century, the inter-war period and the planetary economic recession. The concluding fruits of these historical presentations are the lump-sum revenue enhancement and its function in full crisis, as noted in the decisions of the brief history of Rumanian revenue enhancement.

Cardinal words: revenue enhancement, lump-sum revenue enhancement, globalisation of revenue enhancement, crisis

JEL Classification: E32, H21, H25, K34

1. Taxs during the Phanariote Age

1.1. Introductory General Issues

The regulating power of the colonies in the early Rumanian lands, post-Dacian, was in the custodies of a caste, which used to be passed from coevals to coevals through the bequest left to all kids. Members of this caste were called cnezi, who, at their bend, for the judgement of the affairs between them and the villagers, every bit good as in order to take the villagers in wars, used to denominate the most worthy of them as their military head, called Waywode ( Ro. Voevod or Voievod ) . The population had responsibilities towards the cnezi and waywode, giving them some of their merchandises, working for them for a figure of yearss per twelvemonth, and on vacations and other yearss of jubilation used to give them plocoane ( homage gifts come ining in the duties of liege work forces towards their vassal Godheads ) and gifts. Taxs in hard currency seem non to hold existed, except those which were cashed as imposts, and belong wholly to the waywode. Wallachia was created by the terminal of the thirteenth century through the brotherhood of the two voivodeships Litovoiu and Gorjului, on both sides of the Olt River. Moldavia was founded by the mid-century of the fourteenth century, being created by a great figure of Romanians from MaramureAY , who had passed the mountains and had settled between the Carpathians and the Prut River, in order to get away the sovereignty claims of Hungarians.

Duties consisted, every twelvemonth, of revenue enhancements ( Ro. dA?ri ) , everything one had to give to the Lord, or of the tithe ( Ro. dijmA? ) , the 10th portion of the green goods, and normally they were the alleged plants for the Lord, in the signifier of: the carrying or the transit by passenger cars ; the graze or the eating of the Godhead ‘s Equus caballuss ; the remount, viz. the ensuring of Equus caballuss necessary for conveying the pressing intelligence ; the haymaking ; sturgeon fishing, three yearss per twelvemonth for the Lord ; and for the community, the lordly works, in the signifier of the duty to work for a figure of yearss per twelvemonth for the Lord in order to mend the fortresses and Millss of the Lord.

Incomes consisted of the imposts responsibility, levied on the boundary lines between states, metropoliss and counties, the testimonial ( Ro. bir ) per capita, the income from the salt mines and the amount coming from mulcts. Tax levy was carried out by a whole setup of revenue enhancement agents. The princedoms did non hold a societal and economical private life, but they depended on the state of affairs of the powers that surrounded them, viz. the Turks, Russians and Austrians.

1.2. The Phanariote Century and Its Tax

The Phanariote Age or the Rumanian Phanariote Century is placed from the historical point of position between 1711 and 1811, when each Lord who came in the state used to deliver the throne, set abouting to pay every bit good an one-year sum to the Sultan. They imposed in the same clip the hardest tallages, viz. : the tithe ( Ro. dijma ) , one of 10 beehives ; the goAYtinA? , a fee of 8 prohibition for each sold hog ; the oerit, a fee of 10 prohibition for each sold sheep ; the vA?cA?rit, a fee of 30 prohibition for each sold ox or cow ; the pogonA?rit, a fee of 2.24 old wreath for an acre of vine in belongings ; the vinA?rit, a fee of 2 prohibitions per bucket ( Ro. vadrA? = ten litres ) of vino ; the tutunA?rit, a fee of 4.48 wreaths per acre planted with baccy plus the alleged plocon of 0.80 wreath ; the imposts responsibility, levied on both import and export, in sum of 3 per centums ; the fumA?rit, a fee of 5 wreaths on each big tap house from Bucharest and Craiova ; the cA?minA?rit, a fee of 66 prohibitions per barrel of vino, sold in carnivals ; the sA?punA?rit, a fee of 1 prohibition per kg of soap.

Boyars and Monasteries were exempt from dijmA? , vA?cA?rit, fumA?rit and carciumA?rit. For goods in theodolite they used to pay a imposts responsibility of 3.33 % when traveling to Campulung, and another responsibility when returning via RucA?r, with the exclusion of goods that passed through BrA?ila, for which they paid merely one imposts responsibility. For internal ingestion goods, they used to pay a imposts responsibility, every bit good, of 4 % .

Subsequently, on March 31st 1862, the undermentioned revenue enhancement Torahs were voted, remembering those matching to the Phanariote period, which unified the land revenue enhancement, puting it to 4 % of the net income of the fixed belongings, the parts for span and route crossing, puting them to 12 old wreath and 4.44 new wreath per twelvemonth, the fee of 10 % on the alleged mort-main, the deficiency of heirs connoting the intercession of the province who could take that the goods of museum involvement be distributed to the specialized museums, the personal parts, puting them to 36 old wreath or 13.33 new wreath per twelvemonth, for the 25 year-old individuals, and 30 old wreath or 11.11 new wreath per twelvemonth, for the individuals aged between 20 and 24.

Digesting about continuously the business by foreign ground forcess until 1856, the Rumanian people, before and after the Union of the Princedoms, passed through and defeated all vicissitudes of times, repressing the diplomatic, political, societal, economical and fiscal adversities. They will organize the moral pledge of the tomorrow ‘s Romania and may function as “ purchase ” for its economic and fiscal development in the far-away hereafter.

The civil retainer is defined of all time since the beginnings as a regular civil ground forces during times of peace, and the attempt of his work is frequently identified with the forfeit of the soldier on the combat Fieldss, comforted by the encouragement given by the gained glorification, instantly acquired through the forfeit of his life.

3. A Few Final Remarks on This Time period

The glorification of the civil retainer during the times of peace is gained barely, being materialized in the prosperity of the State, a prosperity barely gained after a tensed and uninterrupted work, which has no other physiological reaction but that of self-respect, at the shelter of the interior peace whose first accelerator it is. The civil retainer reaches his full mission when he forms around him a school for all citizens of the state, a school of high morality and order, due to which the state ‘s economic and cultural life developed by this manner every bit good in all times and states. This is, in fact, the societal and political function of the civil retainer, in the State, that he fulfilled less frequently that he should hold, but that he will hold to carry through particularly in the hereafter, a context in which he deserves the attending of the authoritiess for the betterment of his material life. Taking as lesson the avowals and the pieces of advice of a life spent in the disposal of the finance of the great Gallic people, and seting them following to our sentiments expressed above, they will non be able, nevertheless, to convey an betterment to the present state of affairs without sedulous work, without order in all the spheres of the public activity, within the legal frame, good determined and coordinated between them from the fiscal and economic point of position, and particularly from the point of position of terrible nest eggs when passing the public money. Romania will be able to go out the current crisis, much easier than any other state, provided that, in the legal Acts of the Apostless of the authorities, the policy be focused on the renewal of the public finance, without which one will non be able to restart the interrupted class of the state ‘s advancement beginning with the day of the month of the effusion of the universe crisis.

2. Taxs during the Interwar Period

2.1. Few Historical and Theoretical Elements Mentioning to the Interwar Taxation

The footing of the province fundss of modern Romania was laid by the Organic Regulations of Muntenia and Moldavia during the period 1831 – 1832 from the point of position of the budget, these constitutional paperss meant, in fact, the passage from the Byzantine feudal fiscal and financial system formed during the old centuries, to the system of regular one-year budgets, based on grosss collected and administered by certain regulations, capable to the political and legal control of the State ‘s constitutional establishments.

The general strategy of the ordinary budget grosss, harmonizing to their official categorization, as presented in 1923, is the undermentioned: the direct revenue enhancements, simple and planetary ; the indirect revenue enhancements, in the signifier of imposts responsibilities, revenue enhancements on A?uicA? and rachiu ( types of brandy ) , revenue enhancements on beer, vino, sugar and glucose, oil, the luxury revenue enhancement and the turnover revenue enhancement, the revenue enhancement on shows ; the State monopolies, in the signifier of baccy, salt, coffin nail paper, lucifers, playing cards ; the incomes from CFR ( the Romanian Railway Company ) and PTT ( the Post, Telephone and Telegraph Services ) , from the Danube and sea seaports, from the shipyard of Turnu Severin, from the docks of GalaA?i and BrA?ila ; the populace sphere grosss, from woods, haste beds, pools, fishing and Danube canals, the State ‘s grazing lands, baby’s rooms and basements, the populace gardens, Equus caballus stallss and dairies ; the subsidies from local budgets for assorted services provided by the State establishments, the constabulary, gendarmes, guards, notaries, the care of schools and tribunals, churches and roads ; the particular incomes coming from pull offing the ministries, depending on the size and the composing of each one. The turnover revenue enhancement is a freshness upon the debut of the Romanian financial system. Practiced for the first clip in the USA, after the sezession war, it was based on the thought, every bit simple as it is clever, of taxing a trade good each clip it passes from one manus to another, therefore representing a beginning of budgetary grosss ; the grater the beginning of budgetary grosss, the more complex its circuit from the manufacturer to the consumer.

The times of war and crisis that encouraged guess and multiple operations with the same goods were peculiarly suited for such taxes.A The consequences of implementing the revenue enhancement system during the circulation, per each gross revenues operation, in “ cascade ” or “ snow ball ” , proved to be so fruitful that, after the First World War, this type of revenue enhancement was adopted by about all capitalist states.

2.2. The Interwar Fiscal Period

In the helter-skelter state of affairs after the First World War, with the production down, with a circulation of goods distorted by the guess in those times, the Rumanian legislator preferred, for the clip being, the Gallic signifier of the cascade revenue enhancement, go forthing for subsequently the German solution, severally in 1927, when the industrial production became more organized and stable. The turnover revenue enhancement was known in another signifier every bit good, that of being levied merely one time, at the topographic point of production, on the juncture of the release of merchandises, used by the German system.

The jurisprudence of Nicolae Titulescu, from August 1st 1921, provided the luxury revenue enhancements of 15 % and 10 % , the revenue enhancement of 3 % , 6 % and 10 % on the volume of gross revenues of the populace houses, with a big shopping multitude, and the general revenue enhancement of 1 % on the entire turnover of each concern, be it common or inadvertent. By presenting this revenue enhancement in the Rumanian revenue enhancement system, they created a beginning of budgetary grosss, which, without impacting the output of the bing revenue enhancements non in the least, proved to be one of the most productive beginnings. Announced as a probationary step, the turnover revenue enhancement was the lone revenue enhancement in the financial statute law of N. Titulescu which was kept under the broad authorities that followed. It non merely has non been abolished, but has become, with the clip, the most of import nexus of the whole indirect revenue enhancement system of Romania, between the two universe wars.

By 1923, the general turnover revenue enhancement on any concern was replaced by a system of individual revenue enhancement of the merchandises when being put into circulation from the topographic point of production or from the imposts. The new revenue enhancements included the amount of all consecutive cascade revenue enhancement levies plus the addition ensuing from the differences in revenue enhancement on the benefits coming from one sale to another. On the whole, the revenue enhancement was increased by about 40 % , taging up the goods by about 2 % . Through the new government of the luxury revenue enhancement and the turnover revenue enhancement introduced in 1933 by the jurisprudence of Virgil Madgearu, in which the quotas of the turnover revenue enhancement have increased by 66 % get downing with the first twelvemonth of operation of the particular build uping budgets, the financial “ ideal ” was about reached ; the inclination towards flawlessness that has made the reform of this revenue enhancement, even if it was accused of holding engaged force per unit areas of revenue enhancement excessively great, is peculiarly bothersome by its very nature and character, but delivering at the same clip.

In close connexion with the reform of the turnover revenue enhancement there is the history of the stamp revenue enhancement on staff of life, of 1 leu per kg, introduced in 1931 in order to make the necessary agencies to cover the premium on exports of wheat. Under the same stalking-horse of equivocation and trouble to command, this stamp revenue enhancement was besides included, in 1933, into the turnover revenue enhancement system and levied in the signifier of a bakeshop quota.

The existent revenue enhancement was even greater, if we take into consideration the “ occult revenue enhancement ” that we will speak about below. The alleged extra-budgetary financess that had non passed through the exchequer filter formed an supernatural extension to the budgets of the cardinal and local establishments for a series of old ages. Speaking of the “ familial fiscal muss ” , some pointed out the fact that the ministries, the county prefectures and constabulary prefectures, every bit good as the different tribunals, founded within the period 1934-1935, were utilizing without restriction the assorted fees and revenue enhancements whose merchandise was spent without any control, demoing that the figure of particular extra-budgetary financess summed up approximately 10 % compared to the incomes registered at the ordinary province budget.

In the old ages 1935-1936, some indicated the fact that the Capital ‘s Police Prefectures was administering, outside the budget and without control, over 20 types of fees. Why does it sound so familiar and why does such a manner of revenue enhancement coexist nowadays excessively?

2.3. Present Echoes and Final Issues

Even though there are some reserves about the truth of appraisals made, it is beyondA any uncertainty that the pattern of the supernatural extra-budgetary revenue enhancement system had an extraordinary development. The being of particular supernatural financess in such an of import proportion agencies, in fact, the creative activity of a 2nd province budget, supplied with illegal revenue enhancement grosss and meant to cover some unregistered disbursals in the province budget.

The existent account must be searched, of class, non in the “ self-generated reaction ” of the public establishments, as the great dramatist, Ion Luca Caragiale, used to state, but in the opprobrious pattern of the assorted cardinal and local governments, known and tolerated by the cardinal variety meats, to put on the taxpayers ‘ shoulders an extra revenue enhancement load, without necessitating the minimal lawfulness and justification that the amplification of the budget involves.

For illustration, in order to construct the new castle of the Prefecture of Bucharest, they collected for old ages, besides the alleged “ bricks ” , the name of the voluntary hard currency parts of citizens, a sort of presents ‘ sponsorship, followed by the exigency fees for any ailment, particular fees for obtaining the enrollment Numberss of vehicles, for the equipped suites and cabarets, at the office for the population, exigency fees for the passport, etc. ; we must besides indicate out the revenue enhancement of 1 leu on measures in eating houses.

Nowadays, approximately 92 % of the grosss cashed for the province budget are collected merely by agencies of seven charges ; the remainder of over 480 charges contribute to the budget by merely 8 % . I do n’t believe that this state of affairs is to anybody ‘s liking, because the legion charges bring more losingss than money, as the disposal cost of most charges supposes a much greater fiscal attempt than what is collected from them.

3. The Lump-sum Tax in the Recession Period

3.1. A Short History of a Global Financial Crisis

Three old ages ago, the state of affairs of international fiscal markets was stable, and the existent estate sphere seemed a more than safe and profitable investing. The present state of affairs is wholly different. The minute of the crisis effusion was February 7th 2007, when HSBC announced that it had jobs caused by the subprime loans, bad mortgage debts back uping the economically disadvantaged countries. “ Dominoes ” began to fall on April 2nd 2007, when New Century Financial announced bankruptcy.

Specialists in the field ensured that the USA would non travel through a similar “ great depression ” of October 24th 1929, despite the gradual moderateness of the economic growing. The EDF cardinal bank system functionaries and those of the American Treasury stated that they faced the worsening assurance of the consumers, the decreased launching of new existent estate undertakings, reduced retail gross revenues, every bit good as the lessening of the industrial production. This is why the USA Treasury began a series of plans, through the federal lodging bureaus and the federal mortgage corporations, in order to refinance the mortgage debitors and to halt the falling monetary values of houses, but without success. Finally, the authorities was forced to nationalise the companies in bankruptcy, like Fannie Mae, Freddie Mac, AIG or to ease, together with EDF, the coup d’etat of some insolvent Bankss by some more powerful histrions of the money market, the instance of Bear Stearns, Washington Mutual or Wachovia and Lehman Brothers.

3.2. The Crisis in Europe

The first moving ridge of the American crises reaches Europe officially on August 9th 2007, when the Gallic bank BNP Paribas announced that it could n’t confront the hard currency backdowns from two of its financess. On September 13th 2007, the British bank Northern Rock demanded the aid of the Bank of England, and the terror began to cover the continent. On October 1st 2008, it was the bend of the Swiss bank system to experience the terror frissons when UBSAG bank announced that it was holding jobs. In order that the crisis “ formula ” to be complete, the addition of the cost of the barrel of oil up to the value of 71 dollars, every bit good as a disequilibrium of the exchange rates, interfered. As a consequence, the industrialised provinces revised their energy policy, every bit good as the far excessively generous imparting offers ; in Great Britain there ‘s no mortgage loan covering 100 % of the edifice ‘s value any more. Due to the fiscal crisis in Hungary with a 70 % exposure to loans in Swiss francs, the type of loans granted in “ alien ” currencies disappeared. The liquidness crisis, followed by the first bank bankruptcies and nationalisations, is besides the instance of the three Bankss in the Republic of Iceland, which are now under the control of the province that is negociating an exigency loan of 4 billion Euros from the banking system of the Russian Federation. Fifteen provinces of the European Union, members of the euro country, have announced that they would implement a program to deliver the Bankss, including a warrant of bank sedimentations.

The figure of the unemployed in Great Britain has increased by 164,000 individuals in the period June – August 2008, this growing being considered the biggest since 1991. The authorities in Madrid has made known the purpose to cut down by 35 % the occupations for foreign workers in the context of a lifting unemployment. While the Republic of Ireland is already in recession and Germany admits that it is “ on the border ” , France prefers to speak about a “ growing intermission ” in 2009.

3.3. The Crisis in Romania

Our state was non to the full stricken, as it had happened in the instance of USA or Great Britain, but the daze moving ridges were felt on assorted degrees of the economic system: more expensive fuel, higher episodes, the rising prices above omens, the reasoning backward of existent estate minutess, investings postponed and disconnected stock market falls, lifting employment. The first additions of episodes in the instance of all loans, irrespective of the recognition currency, granted to companies and to the population, can be notices at six Bankss, Banca RomaneascA? , Piraeus Bank, UniCredit, Marfin Bank, Raiffeisen Bank and Garanti Bank. There are the export jobs of some endeavors because of the foreign companies, which do non hold ready hard currency to pay their contracts in force. Because of this economic phenomenon, they are forced to decrease their production. This is the instance of the ArcelorMittal Steel Facilities of GalaA?i and Hunedoara that are cut downing their production in order non to stay with the sheet metal and wire turn overing Millss in stock. The direction of Henkel Romania, adhesives division, intends to give up a 10 million Euros investing in a mill in the country of Moldova as they will non hold an mercantile establishment for the edifice stuffs or for adhesives, because of the stagnancy of the existent estate sector. And we may travel on with other illustrations.

3.4. The Public Finance in the Crisis and Recession Periods

A proper debut in the revenue enhancement of economic recessions imposes the apprehension of the lump-sum revenue enhancement, this signifier of revenue enhancement that has perplexed and confused both the concern environment and the political environment. In order to acquire to that, I will depict foremost the impression of finance which may hold multiple significances. In English jurisprudence, it means disposal, particularly public, of money, the fiscal support of an endeavor or the fiscal resources of a province, of a company or of a individual. In Rumanian, the construct of finance is used often, particularly in current address, to mention to money, hard currency resources or to fiscal establishments.

Therefore, public finance becomes with the old ages an intercession instrument of the State on the economic and societal degree. The province budget grosss must guarantee non merely the funding of the province setup, harmonizing to the construct of the authoritative public finance, but besides the stimulation and the orientation of the economic development and the accommodation of the societal conditions, viz. of the criterion of life. On the manner of charges and revenue enhancements, some industries may go more attractive, if the decrease of the revenue enhancement quota is proposed. Whether on the manner of revenue enhancement, or by utilizing portion of the net incomes, particularly those really high net incomes which may be redistributed on the societal levelaˆ¦

3.5. The Rumanian Tax in Times of Economic Recession

After Romania ‘s EU accession, one of the chief alterations brought was connected to the revenue enhancement of the microenterprises ‘ grosss, the latter holding the possibility to choose for the payment of a revenue enhancement quota of 2 % of the turnover in 2007, of 2.5 % in 2008 and of 3 % in 2009. Get downing with 2010, the possibility to pay the income revenue enhancement could be eliminated. The microenterprise is the legal individual who on December 31st of the old financial twelvemonth cumulatively meets certain conditions: it produces grosss, other than those ensuing from consultancy and direction, on proportion of over 50 % of the entire grosss ; it has registered among his objects of activity the production of goods, the rendition of services and trade ; it has between 1 and 9 employees and it has grosss that have non exceeded the equivalent in wreath of 100,000 euro.

Once with the visual aspect of the Emergency Ordinance no. 34 and of the Decision no. 488, the one-year minimal revenue enhancement, called the lump-sum revenue enhancement, came into force get downing with May 1st 2009, and it seemed predestined to the financial moving ridges that had generated it.

While finding the net income revenue enhancement, “ the alleged testimonial given by Wallachia and Moldavia to the Ottoman Empire ” will be considered. The computation of the minimal revenue enhancement to be paid for the corresponding trimester or twelvemonth is made by being situated in a class of incomes provided in the tabular array attached, depending on the turnover, “ the day-to-day earning in the household ‘s barn ” , registered on December 31st of the old twelvemonth.

The turnover consists of the entire value, excepting the revenue enhancement, of the goods supplies and services gathered in a calendar twelvemonth.

Valuess of the minimal one-year revenue enhancement for 2009 and 2010, depending on income scope

Table no.1

NO.

Entire Annual INCOMES

( LEI )

Minimum one-year revenue enhancement for the period May- December 2009 ( LEI )

Minimum one-year revenue enhancement for the twelvemonth 2010

1

0-52.000

1.467

2.200

2

52.001-215.000

2.867

4.300

3

215.001-430.000

4.333

6.500

4

430.001-4.300.000

5.733

8.600

5

4.300.001-21.500.000

7.333

11.000

6

21.500.001-129.000.000

14.667

22.000

7

Over 129.000.001

28.667

43.000

Beginning: the Emergency Ordinance no. 34 from April 11th 2009, published in the Official Gazette no. 249 from April 14th 2009.

But in order to better understand what comes following, we will exemplify it: supposing that “ our blood brothers ” are associates in a company and they achieved, last twelvemonth, an economic activity from the sale of veggies, fruits and other properties, adding up 220,000 wreaths, they will hold to pay 4,333 wreath this twelvemonth, harmonizing to the chart.

At the terminal of this semester, by deducting the disbursals from the achieved incomes, they will hold a 10,000 wreath net income, and therefore I will cipher what our brothers will hold to “ give to the revenue enhancement aggregator ” on June thirtieth 2009: 10,000 x 16 % = 1,600 wreath, if the old revenue enhancement is calculated ; therefore, they owed and paid for the 1st trimester 800 wreath = 5,000 ten 16 % that we have to deduct from the following responsibility, viz. for the 2nd trimester, through the operation 1,600 – 800 = 800 wreath.

But “ in our courtyard ” , we have switched to the new revenue enhancement chart for the months of May and June ; this is why we have to take into consideration the 4,333 lei revenue enhancement corresponding to the entire one-year income of 220,000 wreath in the above-named tabular array, and therefore the undermentioned algorithm consequences: 6,500 wreath / 12 months = 542 lei x 2 months = 1,083 wreath. Therefore, for the 2nd trimester, the company owes a revenue enhancement of 1,083 wreaths, non 800 wreath. The sum of 1,083 wreath will be entered in the Statement 100 sing the payment duties for the province budget, matching to the 2nd trimester of the present twelvemonth. For the 3rd twelvemonth, the algorithm will be: 6,500 wreath / 12 months = 542 ten 3 months = 1,625 wreath, stand foring the minimal revenue enhancement to pay, the same for the 4th semester.

The algorithm for minimal revenue enhancement to pay

Table no. 2

No.

Time period

Income

Expenses

Gross Net income

Tax Quota

Calculated Tax

Minimal Tax to Pay

1

1st trimester

25.000

20.000

5.000

16 %

800

0

2

2nd trimester

25.000

20.000

5.000

16 %

800

1.083

3

3rd trimester

25.000

20.000

5.000

16 %

800

1.625

4

4th trimester

25.000

20.000

5.000

16 %

800

1.625

5

twelvemonth

100.000

80.000

20.000

16 %

3.200

4.333

6

1st trimester

25.000

20.000

5.000

3 %

750

0

7

2nd trimester

25.000

20.000

5.000

3 %

750

1.083

8

3rd trimester

25.000

20.000

5.000

3 %

750

1.625

9

4th trimester

25.000

20.000

5.000

3 %

750

1.625

10

twelvemonth

100.000

80.000

20.000

3 %

3.000

4.333

Please notice in the tabular array above the comparing, foremost between the sum of the revenue enhancement owed of 3,200 wreaths, with a quota of 16 % and the lump-sum revenue enhancement of 4,333 wreath, in the instance of the company situated in the class of little and average endeavors, and secondly between the sum of the income revenue enhancement of 3,000 wreaths, with the quota of 3 % , and the lump-sum revenue enhancement of 4,333 wreath, in the instance of the company in the class of microenterprises. From following twelvemonth, viz. 2010, the analyzed taxpayers will use the prepayment system, in sum of a one-fourth of the sum owed for the old twelvemonth, paid each trimester, followed by the accommodation at the terminal of the current twelvemonth.

For illustration, our brothers ‘ company will hold to pay for the 1st trimester of the twelvemonth 2010 the sum of 1,075 wreaths ensuing from the algorithm: 4,300 / 4 = 1,075 wreath.

3.6. Some concluding decisions and issues

So, the following twelvemonth, the microenterprise in the tabular array will hold to province that it is a company which has the duty to pay a net income revenue enhancement quota of 16 % , and both analyzed companies, harmonizing to the turnover of 100,000 wreath, will be situated in an inferior revenue enhancement chart, “ because of the phenomenon called recession ” , and therefore they will hold to pay, at the terminal of the twelvemonth, a minimal revenue enhancement of 4,300 wreath, a fact that will be all right, in our sentiment, sing the rising prices of 5 % . This twelvemonth ‘s freshly established taxpayers, who declare they are paying the net income revenue enhancement, do n’t hold to pay the lump-sum revenue enhancement in 2009. Let ‘s state that, in July, our brothers declare the impermanent inaction for a period of three old ages of the two companies analyzed ab initio, through a petition for filing of amendments, at the Trade Register Office under the authorization of ArgeAY Court ; therefore, they will non owe the lump-sum revenue enhancement any quag, waiting for the local and foreign governors to happen the counterpoison to the current crisis on the planetary degree. Some envisage the fact that the existent lump-sum revenue enhancement will non roll up the expected financess for the province budget by the terminal of 2009 ; hence, on the tabular array of specializers in the Ministry of Finance, there is the legislative proposal to increase the VAT at 22 % and the alone quota to 18 % , get downing with the following twelvemonth. This fact would convey a new moving ridge of cost additions.

4. Selective Bibliography

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Aslan Th.C. – FinanA?ele Romaniei de la Regulamentul Organic panA? azi, Tratat de FinanA?e ( Romania ‘s Finance from the Organic Regulation up to Present, Finance Treatise ” ) , Bucharest 1925,

BA?icoianu I.C. – Istoria politicii noastre vamale AYi comerciale de la Regulamentul organic AYi panA? in prezent. RelaA?iunile noastre comerciale copper Germania, Austro-Ungaria, Anglia, FranA?a, Italia AYi Rusia de la 1871 La 1902 ( “ The History of Our Customss and Trade Policy from the Organic Regulation up to Present. Our Trade Relations with Germany, Austro-Hungary, England, France, Italy and Russia from 1871 to 1902 ” ) , Bucharest 1913,

CrA?ciuneanu V.- SoluA?ii useful in domeniul economic AYi financial blare Romania ( “ Useful Solutions in the Economic and Fiscal Domain in Romania ” ) , Ed. Paralela 45, 2009,

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***The Emergency Ordinance no. 34/2009 sing the Budget Rectification for the Year 2009 and the Regulation of Some Financial and Fiscal Measures, published in the Official Gazette of Romania, portion I, under no. 249 from April 14th 2009

***Decision no. 488 from April 28th 2009 for finishing the Methodological Norms of Enforcement of Law no. 571/2003 sing the Fiscal Code, approved by the Government ‘s Decision no. 44/2004, published in the Official Gazette no. 286 from April 30th 2009,

*** “ ArgeAYul ” Collection, for the period January 1st 2008- June 30th 2009.