We cannot expect a different way of thinking from people who are so arranged. Their mindset is built against markets and a market economy, says Dan Schwartz, fiscal consultant, co-founder and managing partner of RSM Romania.

“This is a centralized, socialist type of thinking that cannot benefit Romania. It is not based on economic judgments, but on arithmetical calculations,” said the tax consultant.

• “In the minds of such people, if they raise taxes by 30%, revenues will automatically increase by 30%. This is probably what happens in the head of a second-grader who is starting to learn the first elements of arithmetic.”

• “Anyone who deals with economics, business, theoretician, economist knows that the economy is an extremely complex system. The influencing factors are so numerous and unpredictable that it is very difficult to create winning algorithms.”

“To think that an algorithm called raising taxes can produce positive results is naive at best,” he says.

According to him, there is a risk of the economy moving from the white zone to the gray and black zone.

“The more restrictions we have, the higher the taxes, the more incentives for a person who wants not to pay taxes, not to pay them. It’s worth the risk. This will happen in reality. That’s what the theory says, that’s what the tax practice says,” said Dan Schwartz.

• “Government advisers believe that they have no practical experience. At best, they have read some books that they understand to a greater or lesser extent. The result is visible: measures that have no connection with reality, that affect businessmen directly, that affect the population indirectly.”

“No one comes to invest in a country where there is no fiscal predictability, where significant taxes are imposed suddenly without any real public consultation,” Schwartz explained.

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