Thursday, December 22, 2005

The flat tax is not just for Latvia anymore

From the WashPost – “A flat out winner on tax reform”:

The flat-tax revolution in Eastern Europe is particularly compelling. Nine nations from the old Soviet bloc have adopted the flat tax -- which taxes income at one rate -- and others are poised to. In an ironic twist, these countries are rejecting the class-warfare politics of yesteryear and building tax systems specifically designed to attract investment, fuel economic growth and treat all citizens fairly.

Russia, for instance, enjoys the benefits of the 13 percent flat tax it adopted in 2001. The tax quickly yielded positive results. Revenue poured into government coffers as tax evasion and avoidance became much less profitable. Inflation-adjusted personal income tax revenue has more than doubled since the flat tax was implemented.
We’ll never see a flat tax in America due to the conspiracy among accountants and lawyers to keep the tax system unnecessarily complicated.

1 comment:

Anonymous said...

actually, if you read Neal Boortz's book "The Fair Tax Book", it explains that most accountants would love to see a flat consumption tax implemented.. it would make their job much easier, and businesses could put their skills to much better use.. the only people who are inherently opposed to a consumption tax are those who don't pay an income tax (which unfortunately is about half of the adults in our country) and politicians who use tax money to buy votes

it'll take another revolution at the grassroots level to change the system.. but that was done once a few hundred years ago.. it can be done again