The World is Flat – except here

[Imported from Whale Oil Beef Hooked on Blogger]

I was searching th archives of the Opinion Jornal when I came across an article about Flat tax.

I found the article rivetting reading. Here are some excerpts. Particularly interesting to note that Labour in the UK partakes in the same sort of subterfuge in attempting to hide bad news.

It’s increasingly popular overseas, with Romania and the republic of Georgia adopting it last January. Greece is likely to introduce a 25% single rate for both corporate and personal income next month. If Poland’s opposition parties win next month’s elections they are likely to introduce a flat tax. In Italy, the Bruno Leoni Institute has just published an interview with former finance minister and current defense minister Antonio Martino detailing his support of the flat tax.

And here is the part about Gordon Brown censoring a report on Flat Tax.

In Britain, die-hard opponents of the flat tax, such as Chancellor of the Exchequer Gordon Brown, were caught censoring portions of an internal Treasury paper on the subject that was obtained under the recently effective Freedom of Information Act. The unexpurgated version, leaked to the Daily Telegraph, found that a flat tax would likely make Britain more attractive to foreign investors, eliminate economic distortions and create a “mini-economic boom.” The paper noted that under flat-tax systems in other European countries the rich end up paying a larger share of total tax revenues. In flat-tax countries, taxpayers in the highest brackets move from consumption or tax-sheltered investments to more productive, taxable investments. Many higher earners work harder or take additional risks, rewarded by higher after-tax returns.

A Brussels based organisation called the Centre for New Europe has conducted a study that found;

none of the countries that have adopted the flat tax are seriously contemplating any retreat from it. Flat-tax pioneer Estonia is even reducing its rate by two percentage points a year until it drops to 20% in 2007. Since the tax’s inception in 1994, Estonia has had an average growth of 5.2% a year, and now also ranks fourth (out of 155 countries) in the Index of Economic Freedom, published by The Wall Street Journal and the Heritage Foundation

And what about other countries;

After being mired in stagnation for years, in 2001 Russia implemented a flat tax of 13% for individuals, along with a 15% rate for most business income. The economy grew 7.3% last year, thanks in part to underground activity going legitimate, more than doubling revenues from income taxes. Even the New York Times, which opposes a flat tax in the U.S., has praised, President Vladimir Putin for “radically simplifying the code and slashing rates.” On a trip to flat-tax Slovakia earlier this year, President Bush, extolled those who are using the flat tax “to attract capital and create economic vitality.”

And in Germany;

The center-right Frankfurter Allgemeine Zeitung, Germany’s most respected paper, noted that while the idea has been predictably attacked by unions and some business interests, “massive resistance by people representing particular interests and associations

 


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