July 30, 2007 11:04AM # Bulgaria Announces 10 Percent Flat Tax By [Daniel J. Mitchell](https://www.cato.org/people/daniel-mitchell) --- SHARE According to Bulgarian news sources, the coalition government in Bulgaria has [agreed](http://news.dnevnik.bg/) to implement a low-rate flat tax starting next January. This is good news for Bulgaria, but also good news for the rest of Europe since it means further pressure for tax-rate reductions and tax reforms. The [global flat tax revolution](https://www.cato.org/pubs/policy_report/v29n4/cpr29n4-1.pdf) is picking up so much steam that the time has come to propose a theme song. I realize I’m showing my age, but [*Another One Bites the Dust*](http://www.youtube.com/watch?v=rNQRfBAzSzo) seems appropriate. Perhaps the song could be piped into the European Commission and the Organization for Economic Cooperation and Development, adding to their angst about the market-based reforms sweeping the world? > At an operative cabinet meeting Sunday attended by the top brass from the three parties it was decided to retire the current three-bracket personal income tax rate system and replace it with a flat rate of 10%. …The government also decided on a 10% pension increase from October 2007, enabled by a 20% budget revenue overperformance by end-July, and a 3% cut in the social security burden. ##### Related Tags [Tax and Budget Policy](https://www.cato.org/tax-budget-policy) [![Creative Commons License](/build/cato_2020/images/creative-commons.svg)](http://creativecommons.org/licenses/by-nc-sa/4.0/) This work is licensed under a [Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License](https://creativecommons.org/licenses/by-nc-sa/4.0/).