Expert reveals: Why tax changes are not a panacea for social policy

03.08.2025 | Economy

A financial analyst criticized the proposal for progressive taxation, emphasizing the need for targeted spending to support those in need.

Снимка от stevepb, Wikimedia Commons, под CC0

Leading Bulgarian financial expert Lyubomir Datsov rejected the idea of social policy through tax mechanisms, describing it as a deeply ineffective approach. In sharp criticism of the proposals by BSP leader Atanas Zafirov, presented during the traditional party congress at Buzludzha, the specialist categorically stated that the tax system is not an appropriate tool for social transformations.

In an expert commentary on national television, Datsov emphasized a key principle in state governance: social support must be implemented through the expenditure part of the budget, not by manipulating revenues. "If you want an effective state policy, you must support those in need directly and transparently," the financial expert was adamant.

The expert's analysis reveals the risks of the proposed progressive taxation. According to him, those with stable and relatively good incomes will be most affected, while the extreme groups - low-income and high-income - would paradoxically derive some benefit.

Datsov warned that such a tax model would not only fail to improve the budget situation but could lead to additional losses. His expert position emphasizes the need for a precise and targeted approach in forming social policy that guarantees real support for those in need.

The financial specialist's statement comes at a time of active discussions about tax reform, casting doubt on populist proposals and directing attention to the essence of effective state governance.