Norstat: Sixty percent of survey respondents support progressive income tax in Estonia

Sixty percent of respondents to a recent survey said they would support introducing a progressive income tax rate in Estonia, compared with half the figure who said they opposed it.
The survey, conducted this week by pollsters Norstat Eesti on behalf of think tank the Institute of Social Studies (MTÜ Ühiskonnauuringute Instituut), found that support for a progressive rate of income tax ran at over 50 percent from supporters of all major political parties save for the Reform Party – which, while it did not introduce the flat tax rate, has traditionally been the main party of low taxation and low state intervention – and even then, the minority of Reform supporters who said they back a progressive rate was not small, Norstat found.
To this question, just under 60 percent of respondents said "Yes" (32.2 percent) or "Preferably yes," (28.1 percent), while the proportion who answered either "No" (13.1 percent) or "Preferably not" (17.5 percent) came to just under 31 percent. The remaining 9 percent responded "Can't say."
Respondents were posed the following question: "Would you support the introduction of a progressive income tax in Estonia?"
This was followed by the explanation: "Whereas, at the moment, the same flat income tax rate applies to all [earners] in Estonia, ie. 20 percent a progressive income tax rate would see a higher income tax rate imposed upon people earning a higher salary, while the income tax rate for people earning a lower salary, would be lower."
No proposed rates were included in the question.
Proponents of a progressive income tax rate also outnumbered opponents across almost all socio-demographic groups, the survey found.
Only in the highest income bracket (meaning people earning €2,000 or more per month gross) was a majority opposed to the introduction of a progressive rate, though not a huge one either – 54 percent in favor compared with 43 percent against. This demographic is one of the Reform Party's major bedrocks in terms of support.
Of actual stated Reform Party-supporting respondents, the split was practically the same: 54 percent opposed, but as much as 41 percent were in favor of a progressive income tax rate, the survey found.
Supporters of all other major parties were more in favor of the policy than against, even in the case of those respondents who say they back Reform's coalition partner, Eesti 200. In this case, 58 percent of those who answered the questions aid they would support a progressive income tax rate.
Voters of the other coalition partner, the Social Democrats (SDE), were most in favor of the policy – with 75 percent saying they supported it, but Isamaa voters, too, were not far behind, at 68 percent. This is also significant in that when it was first introduced nearly quarter-of-a-century ago, the flat tax rate had been the brainchild of Mart Laar, the then prime minister and leader of Isamaa's progenitor party.
Support for the progressive rate cut further across party fault lines in that 70 percent of both Center Party and Conservative People's Party of Estonia (EKRE) voters said they were in favor of the policy.
The Norstat poll commissioned by the Institute of Social Studies followed a statement by SDE leader and Interior Minister Lauri Läänemets published by Postimees on Monday, that the Reform-Eesti 200-SDE coalition is preparing to introduce a progressive income tax rate.
Norstat's survey was conducted online on March 5 and quizzed just over a thousand Estonian citizens aged 18 and above.
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Editor: Andrew Whyte, Mait Ots










