Increasing Social Inequality in the Republic of Moldova Through the Lens of Tax Inequity

Abstract

This study examines the inequalities identified in the tax system of the Republic of Moldova, analysing, for the most part, the single rate of 12%, which, moreover, contributes to the accentuation of social and economic disparities, because with the introduction of the proportional system of taxation, there has been an increase in the level of inequality in the country. The author points out that a flat rate significantly benefits those with higher incomes, as the percentage applied is uniform for all taxpayers. The arguments put forward to prove this theory are based on analysis of tax data. Thus, those with higher financial incomes are advantaged, while those with lower incomes – bear a proportionately higher burden. The article highlights the need for an overhaul of the tax system to eliminate this inequality and promote a fairer distribution of the tax burden in order to reduce social inequality.