George Henry Durrie - East Rock_ New Haven

Estonia has witnessed several changes of government in the last few years. In July 18, there has been another one. However, Estonia’s success story as the most economically and technologically developed country in transition has not stopped yet. The previous Prime Minister, Kaja Kallas, has now retaken his position as the new Prime Minister, thus ensuring that his country manages well under transition.

Old_Woman_Examining_a_Coin_by_a_Lantern_(Sight_or_Avarice),_Gerrit_van_Honthorst,_1623,_The_Kremer_Collection

Estonia, Latvia, and starting from this year Poland (partly) are taxing profits earned by companies only at the dividend payout time. Such a model promises to raise both domestic and foreign investment, and it can help the economy recover from the crisis more quickly. The opponents of this taxation system in Lithuania argue that various benefits, which alleviate the burden on business and encourage investment where it is most needed, are already in place.

Keit Pentus-Rosimannus. Source: Siim Lõvi /ERR

“The income tax rate could be reduced to 13-15%, sending all income tax to local governments and reducing labor taxes” suggested the Minister of Finance Keit Pentus-Rosimannus (Reform) on Monday. Writing on social media, the minister said this move would help local governments to finance maintenance and care costs. She also wrote that Estonian labor taxes are too high while health care and social care costs need to be better funded in an aging society.