Europe And The Flat Tax
TaxProf Blog links to a WSJ column (subscrip req.) that points out 9 out of the 11 European countries who’ve recently moved to a flat tax are seeing a GDP growth greater than the worldwide average. Here are the countries (bolded fell below the GDP average): Estonia, Georgia, Greece, Hong Kong, Latvia, Lithuania, Romania, Russia, Serbia, Slovakia, & Ukraine.
My first response to this is that while a flat tax is intriguing, most of the countries listed here are former Eastern bloc countries. It seems to me that Communism created a pretty even standard of living across the board, so a flat tax makes a lot of sense for a country where most of the people are on a even keel. Does that mean it would work here?
My second response to this is “More data please!”
My third response to this is “More Ovaltine please!”
(HT: Andrew Sullivan)