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Flat tax
From Wikipedia, the free encyclopedia
A flat tax (short for flat tax rate ) is a tax system with a constant marginal rate, usually applied to individual or corporate income. A flat tax falls under proportional tax as they allow certain deductions. There are various tax systems that are labeled "flat tax" even though they are significantly different.
Contents
1 Major categories 1.1 "True" flat rate income tax 1.2 Marginal flat tax 1.2.1 Flat tax with limited deductions 1.2.2 HallRabushka flat tax 1.2.3 Negative income tax 1.2.4 Capped flat tax 2 Requirements for a fully defined schema 2.1 Defining when income occurs 2.2 Policy administration 2.3 Avoiding deductions 3 Tax effects 3.1 Equity of distribution 3.2 Diminishing Marginal Utility 3.3 Administration and enforcement 3.4 Revenues 3.5 Overall structure 3.6 Border adjustable 3.6.1 Tax simplification 4 Recent and current proposals 5 Around the world 5.1 Countries that have flat tax systems 5.1.1 At the state or provincial level 5.2 Countries reputed to have a flat tax 5.3 Countries that had a flat tax in the past 5.4 Countries considering a flat tax system 5.5 Eastern Europe 6 See also 7 Notes 8 References 9 External links
Major categories
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Flat tax proposals differ in how they define what is subject to tax.
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money from the government). For example, if it earned $34,000 a year, it would receive a check for $4,000. The NIT is intended to replace not just the USA's income tax, but also many benefits low income American households receive, such as food stamps and Medicaid. The NIT is designed to avoid the welfare trapeffective high marginal tax rates arising from the rules reducing benefits as market income rises. An objection to the NIT is that it is welfare without a work requirement. Those who would owe negative tax would be receiving a form of welfare without having to make an effort to obtain employment. Another objection is that the NIT subsidizes industries employing low cost labor, but this objection can also be made against current systems of benefits for the working poor. Capped flat tax A capped flat tax is one in which income is taxed at a flat rate until a specified cap is reached. For example, in 2010, the United States Social Security and Medicare payroll tax assessed a flat rate of 7.65% on all income under $106,800 and only 1.45% above that level.[2] Thus, someone earning $100,000 paid $6,200 (a rate of 6.2%) while someone earning $1,000,000 paid $21,122 (a rate of 1.45% on all income and 6.2% on first $106,800). This cap has the effect of turning a nominally flat tax into a regressive tax.[3]
Policy administration
Taxes, in addition to providing revenue, can be potent instruments of policy. For example, it is common for governments to encourage social policy such as home insulation or low income housing with tax credits rather than constituting a ministry to implement these policies.[7] In a flat tax system with limited deductions such policy administration mechanisms are curtailed. In addition to social policy, flat taxes can remove tools for adjusting economic policy as well. For example, in the US short term gains are taxed at a higher rate than long term gains as means to promote long term investment horizons and damp speculative fluctuation.[8] Thus claims that flat taxes are cheaper/simpler to administer than others are incomplete until they factor in costs for alternative policy administration.
Avoiding deductions
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In general, the question of how to eliminate deductions is fundamental to the flat tax design: deductions dramatically affect the effective "flatness" in the tax rate. Perhaps the single biggest necessary deduction is for business expenses. If businesses were not allowed to deduct expenses, businesses with a profit margin below the flat tax rate could never earn any money since the tax on revenues would always exceed the earnings. For example, grocery stores typically earn pennies on every dollar of revenue; they could not pay a tax rate of 25% on revenues unless their markup exceeded 25%. Thus, corporations must be able to deduct operating expenses even if individual citizens cannot. A practical difficulty now arises as to identifying what is an expense for a business.[9] For example, if peanut butter makers purchases a jar manufacturer, is that an expense (since they have to purchase jars somehow) or a sheltering of their income through investment? Flat tax systems can differ greatly in how they accommodate such gray areas. For example, the "9-9-9" flat tax proposal would allow businesses to deduct purchases but not labor costs.[10] (This thus effectively taxes labor-intensive industrial revenue at a higher rate.[11]) How deductions are implemented will dramatically change the effective total tax and thus the flatness of the tax.[4] Thus, a flat tax proposal is not fully defined until it differentiates deductible and non-deductible expenses.
Tax effects
Equity of distribution
Introduction of flat tax may remove preexisting tax deductions. This may lead to unequal distribution for various income brackets that other tax methods also do.
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expenses the IRS deems to be taxable income, such as stock options, bonuses, and certain executive privileges. Given a flat rate of 15%, ACME would then owe the IRS (3M + 2M + 1M) 0.15 = 900,000. This payment would, in one fell swoop, settle the tax liabilities of ACME's employees as well as the corporate taxes owed by ACME. Most employees throughout the economy would never need to interact with the IRS, as all tax owed on wages, interest, dividends, royalties, etc. would be withheld at the source. The main exceptions would be employees with incomes from personal ventures. The Economist claims that such a system would reduce the number of entities required to file returns from about 130 million individuals, households, and businesses, as at present, to a mere 8 million businesses and self-employed.[15] However this simplicity relies on there being no deductions of any kind allowed (or at least no variability in the deductions of different people). Furthermore, if income of differing types are segregated (e.g., pass-thru, long term cap gains, regular income, etc.) then complications ensue. For example, if realized capital gains were subject to the flat tax, the law would require brokers and mutual funds to calculate the realized capital gain on all sales and redemption. If there were a gain, 15% of the gain would be withheld and sent to the IRS. If there were a loss, the amount would be reported to the IRS, which would offset gains with losses and settle up with taxpayers at the end of the period. Lacking deductions this scheme cannot be used to implement economic and social policy indirectly by tax credits, and thus, as noted above, the simplifications to the government's revenue collection apparatus may be offset by new government ministries required to administer those policies.
Revenues
The Russian Federation is a considered a prime case of the success of a flat tax; the real revenues from its Personal Income Tax rose by 25.2% in the first year after the Federation introduced a flat tax, followed by a 24.6% increase in the second year, and a 15.2% increase in the third year.[16] The Laffer curve predicts such an outcome, attributing the primary reason for the greater revenue to higher levels of economic growth stemming from the introduction of the flat tax. The Russian example is often used as proof of the validity of this analysis, despite an International Monetary Fund study in 2006 which found that there was no sign "of Laffer-type behavioral responses generating revenue increases from the tax cut elements of these reforms" in Russia or in other countries.[17]
Overall structure
Taxes other than the income tax (for example, taxes on sales and payrolls) tend to be regressive. Hence, making the income tax flat could result in a regressive overall tax structure. Under such a structure, those with lower incomes tend to pay a higher proportion of their income in total taxes than the affluent do. The fraction of household income that is a return to capital (dividends, interest, royalties, profits of unincorporated businesses) is positively correlated with total household income.[citation needed ] Hence a flat tax limited to wages would seem to leave the wealthy better off. Modifying the tax base can change the effects. A flat tax could be targeted at income (rather than wages), which could place the tax burden equally on all earners, including those who earn income primarily from returns on investment. Tax systems could utilize a flat sales tax to target all consumption, which can be modified with rebates or exemptions to remove regressive effects (such as the proposed FairTax in the U.S.[18]).
Border adjustable
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A flat tax system and income taxes overall are not inherently border-adjustable; meaning the tax component embedded into products via taxes imposed on companies (including corporate taxes and payroll taxes) are not removed when exported to a foreign country (see Effect of taxes and subsidies on price). Taxation systems such as a sales tax or value added tax can remove the tax component when goods are exported and apply the tax component on imports. The domestic products could be at a disadvantage to foreign products (at home and abroad) that are border-adjustable, which would impact the global competitiveness of a country. However, it's possible that a flat tax system could be combined with tariffs and credits to act as border adjustments (the proposed Border Tax Equity Act in the U.S. attempts this). Implementing an income tax with a border adjustment tax credit is a violation of the World Trade Organization agreement. Tax exemptions (allowances) on low income wages, a component of most income tax systems could mitigate this issue for high labour content industries like textiles that compete Globally. In a subsequent section, various proposals for flat tax-like schemes are discussed, these differ mainly on how they approach with the following issues of deductions, defining income, and policy implementation. Tax simplification Flat tax has been proposed as a means of simplifying the tax code from the current progressive or graduated marginal tax rates. Yet of the 72,000+ pages in the US tax code as of 2009, less than a quarter of one of those pages is needed to list the progressive marginal tax rates. Calculating the progressive tax after determining the net taxable income may be the simplest activity one performs in manually calculating one's income tax liability. Extreme simplification could be achieved by merely eliminating all tax deductions, exclusions, subsidies, rebates etc. and retaining the six tier progressive marginal tax structure.
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Paul Kirchhof, who was suggested as the next finance minister of Germany in 2005, proposed introducing a flat tax rate of 25% in Germany as early as 2001, which sparked widespread controversy. Some claim the German tax system is the most complex one in the world.[citation needed ] On 27 September 2005, the Dutch Council of Economic Advisors recommended a flat rate of 40% for income tax in the Netherlands.[citation needed ] Some deductions would be allowed, and persons over 65 years of age would be taxed at a lower rate. In the United States, proposals for a flat tax at the federal level have emerged repeatedly in recent decades during various political debates. Jerry Brown, former and current Democratic Governor of California, made the adoption of a flat tax part of his platform when running for President of the United States in 1992. At the time, rival Democratic candidate Tom Harkin ridiculed the proposal as having originated with the "Flat Earth Society". Four years later, Republican candidate Steve Forbes proposed a similar idea as part of his core platform. Although neither captured his party's nomination, their proposals prompted widespread debate about the current U.S. income tax system. Flat tax plans that are presently being advanced in the United States also seek to redefine "sources of income"; current progressive taxes count interest, dividends and capital gains as income, for example, while Steve Forbes's variant of the flat tax would apply to wages only.[24] In 2005, Senator Sam Brownback, a Republican from Kansas, stated he had a plan to implement a flat tax in Washington, D.C..[25] This version is one flat rate of 15% on all earned income. Unearned income (in particular capital gains) would be exempt. His plan also calls for an exemption of $30,000 per family and $25,000 for singles. Mississippi Republican Senator Trent Lott stated he supports it and would add a $5,000 credit for first time home buyers and exemptions for out of town businesses.[citation needed ] DC Delegate Eleanor Holmes Norton's position seems unclear, however DC mayor Anthony Williams has stated he is "open" to the idea.[citation needed ] Flat taxes have also been considered in the United Kingdom by the Conservative Party. In September 2005, George Osborne, then in opposition, said that while he was "fully conscious that we may not be able to introduce a pure flat tax, we may be able to move towards simpler and flatter taxes."[26] However, it was roundly rejected by Gordon Brown, then the Labour Chancellor of the Exchequer, who said that it was "An idea that they say is sweeping the world, well sweeping Estonia, well a wing of the neo-conservatives in Estonia", and criticised it thus: "The millionaire to pay exactly the same tax rate as the young nurse, the home help, the worker on the minimum wage".[27]
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Country or territory Abkhazia[28] Albania[29][30][31] Andorra[32] Anguilla[33] Belarus[31] Belize[34] Bolivia[31] Bulgaria[37][31] East Timor[38] Estonia[39][40][41][31] Georgia[41][42][31] Greenland[43] Grenada[44] Guernsey[45][31] Guyana[46] Hungary[31] Jamaica[31] Jersey[47][31] Kazakhstan[48][31]
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Bosnia and Herzegovina[35][36] 10% 10% 10% 21% 20% 37 to 46% (depending on the municipality) 30% 20% 33.33% 16% 25% 20% 10%
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Kyrgyzstan[45][49] Latvia[41][31] Lithuania[41][50][31] Macedonia[45][51][31] Madagascar[31] Mauritius[45][31] Mongolia[52] Montenegro[53][31] Nagorno-Karabakh[54] Romania[41][31] Russia[41][55][31] Saint Helena[56] Saudi Arabia[31] Serbia[57][31] Seychelles[31] South Ossetia[58] Transnistria[59] Trinidad and Tobago[31] Turkmenistan[60] Tuvalu[61] Ukraine[41][62][31] At the state or provincial level
10% 25% 15% 10% 22% 15% 10% 9% 5% 16% 13% 25% 2.5% zakat (citizens of GCC countries) 20% income tax (foreigners) 12% 15% 12% 10% 25% 10% 30% 15%
At the federal level, Canada and the United States tax personal income at progressive rates. In addition to the federal income tax, most states, provinces and territories in these countries also tax income. Most of them also use progressive rates, but some use a flat tax rate.
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State or province Alberta[63] Colorado[64] Illinois[64] Indiana[64][65] Massachusetts[64] Michigan[64][65] 10% 4.63% 5%
3.4 to 6.53% (depending on the county) 5.3% 4.35 to 6.85% (depending on the city)
New Hampshire[64] 5% Pennsylvania[64][65] 3.07 to 6.998% (depending on the municipality) Tennessee[64] Utah[64] 6% 5%
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government believes that a flat tax would be detrimental to middle income earners, who would see a rise in taxation from their current levels.[75] It is expected that Tony Abbott will unveil his positions on tax policy early next year.[76] Faroe Islands: The cabinet appointed in November 2011, consisting of the Union Party, People's Party, Self-Government Party and Centre Party, defined a flat tax system as a part of its financial policy.[77] The bill introducing the flat tax passed on 23 December 2011.[78] Greece: There are some articles from 2005 indicating that the Greek government considered a flat tax. If it is still on the table,[79] it apparently has not passed yet as of February 2012.[80][81] Panama: During the 20082009 political campaign, presidential candidate Ricardo Martinelli has included on his government plan the replacement of the current tax system implemented by president Martin Torrijos with a 10 or 15% flat tax rate in order to raise employment and wages. Poland: In the 2007 elections, the Civic Platform gained 41.5% of the votes, running on a 15% flat tax as one of the main points in the party program.[82]
Eastern Europe
Advocates of the flat tax argue that the former communist states of Eastern Europe have benefited from the adoption of a flat tax. Some of these nations have experienced strong economic growth of 6% and higher in recent years[citation needed ], particularly the Baltic countries, who experience exceptional GDP growth of around 10% yearly. On the other hand, these countries also include the Ukraine for example, one of the poorest countries in Europe and one of the lowest economic growth rates in the world 1990-2007. Serbia has an even lower economic growth rate over the same period of time. Some argue that other factors, primarily the advent of capitalist economic systems and rapid market expansion after Soviet (communist) domination explain the rapid growth. Some argue that economic growth in these countries would likely have occurred regardless of the chosen tax system. Lithuania, which levies a flat tax rate of 15% (previously 20%) on Countries considering flat taxes its citizens, has experienced -15.8%, +1.3%, and +5.8% change in GDP from 2009-2011. The growth in 2011 is listed as being high compared to other nations in the region and 46th globally. [83] The unemployment rate of 15.4% is listed as higher than 151 other nations [83]and the inflation rate of 4.1% is greater than 103 other currencies including that of the European Union [83] In Estonia, which has had a flat tax since 1994 (rate is 21% since 2009, previously was 26%), studies have shown that the significant increase in tax revenue experienced was caused partly by a disproportionately rising VAT revenue.[84] Moreover, Estonia and Slovakia have high social contributions, pegged to wage levels.[84] Both matters raise questions regarding the justice of the flat tax system, and thus its long-term political sustainability.[citation needed ] The Estonian economist and former chairman of his country's
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parliamentary budget committee Olev Raju, stated in September 2005 that "income disparities are rising and calls for a progressive system of taxation are getting louder this could put an end to the flat tax after the next election".[85] However, this did not happen, since after the 2007 elections a right-wing coalition was formed which has stated its will to keep the flat tax in existence. However, critics argue that the tax rates these countries have are actually more progressive than flat.[86] Hungary introduced a flax tax at 16% on 1 January 2011.[87] According to a 2010 study[88] published in the Brussels newspaper L'Anglophone, the tax burden for typical workers in Central and Eastern Europe's "flat tax" countries is slightly higher (40.3% versus 40.2% of the total cost of employment) than that of the progressive systems elsewhere in the EU. "Slovakia has a flat tax rate of 19%," wrote the authors,[89] "but its employers pay a 35.2% contribution to social security (higher than the 34.8% in Belgium) and, in addition to the flat income tax, employees have 13.4% deducted for social security (also higher than the 13.07% in Belgium)," adding that a typical Slovak worker's Tax Freedom Day is a day later than a Finnish worker's. Slovakia reintroduced progressive tax rates in 2013.[71]
See also
Economic Concepts Fiscal drag (also known as Bracket creep) Taxable income elasticity (also known as Laffer Curve) Tax Systems Consumption tax FairTax Income tax Kemp Commission Negative income tax Progressive tax Regressive tax Sales tax Value added tax 999 Plan
Notes
1. ^ Hoover Institution Books The Flat Tax (http://www.hoover.org/publications/books/3602666.html) 2. ^ 26 USC 3101 (http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00003101----000-.html) 3. ^ Are Payroll Taxes Regressive (http://www.economist.com/blogs/freeexchange/2009/04/are_payroll_taxes_regressive) The Economist. 4. ^ a b c See for example the flat tax resources at idebate.org ] 5. ^ Dividends are deductible in rare instances (http://www.cfo.com/article.cfm/12260551) 6. ^ IRS Tax pub 936. the mortgage interest deduction (http://www.irs.gov/publications/p936/ar02.html) 7. ^ For example the ENERGYSTAR (http://www.energystar.gov/index.cfm?c=tax_credits.tx_index) tax credit
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7. ^ For example the ENERGYSTAR (http://www.energystar.gov/index.cfm?c=tax_credits.tx_index) tax credit 8. ^ As a recent example, transaction costs to damp speculation proposed by James Tobin, winner of the 1972 Nobel prize in economics, were recently (2009) proposed to the G20 by British PM Gordon brown as a way to prevent international currency speculation. Krugman (http://www.nytimes.com/2009/11/27/opinion/27krugman.html?_r=1) 9. ^ Deductible business expenses (http://www.irs.gov/businesses/small/article/0,,id=109807,00.html) . 10. ^ Herman Cain's 9-9-9 flat tax variation (http://www.hermancain.com/999plan) . 11. ^ E.D> Kleinbart, An analysis of Herman Cain's 999 plan, Social Science Research Center, 2011 (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1941800) . 12. ^ The diminishing marginal utility means that the number of units of additional 'happiness' afforded by an extra unit of additional money, decreases as one spends more money. [1] (http://www.daviddfriedman.com/Academic/Price_Theory/PThy_Chapter_4/PThy_Chapter_4.html) 13. ^ Hoover Institution Books The Flat Tax (http://www.hoover.org/publications/books/fulltext/flattax/appendix.html) 14. ^ "The flat-tax revolution" (http://www.economist.com/printedition/displayStory.cfm?Story_ID=3861190) . The Economist. 14 April 2005. 15. ^ "The case for flat taxes" (http://www.economist.com/node/3860731) . The Economist. 14 April 2005. 16. ^ The Flat Tax at Work in Russia: Year Three (http://www.russianeconomy.org/comments/042604.html) , Alvin Rabushka, Hoover Institution Public Policy Inquiry, www.russianeconomy.org, 26 April 2004 17. ^ The "Flat Tax(es)": Principles and Evidence (http://www.imf.org/external/pubs/ft/wp/2006/wp06218.pdf) 18. ^ Boortz, Neal; Linder, John (2006). The FairTax Book (Paperback ed.). Regan Books. ISBN 0-06-087549-6. 19. ^ Phillips, Michael M. (16 May 2008). "Mortgage Bailout Infuriates Tenants (And Steve Forbes)" (http://online.wsj.com/article/SB121090164137297527.html) . The Wall Street Journal. 20. ^ Flat-Tax Comeback (http://www.nationalreview.com/nrof_bartlett/bartlett200311100918.asp) Bruce Bartlett, National Review, 10 November 2003 21. ^ http://www.investinmacedonia.org/news.aspx?news=35 22. ^ Albanian government to implement flat tax (SETimes.com) (http://www.setimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2007/04/06/feature-02) 23. ^ http://www.investnet.bg/bulgarian-economy/InvestmentIncentives/why-invest-in-bulgaria.aspx 24. ^ J. Fred Giertz and Timothy R. Watts, "The Flat Tax and the 1996 Presidential Campaign," Illinois Business Review, 52,1 (1995) 25. ^ [2] (http://www.nysun.com/national/dc-may-be-flat-tax-laboratory/23696/) 26. ^ "Osborne urges simpler tax system" (http://news.bbc.co.uk/1/hi/4220838.stm) , BBC News, 7 September 2005 27. ^ Gordon Brown's speech to the Labour party conference (http://politics.guardian.co.uk/labour2005/story/0,16394,1578857,00.html) 26 September 2005 28. ^ Tax Policies (http://www.therepublicofabkhazia.org/pages/our-economy/tax-policies.shtml) , Republic of Abkhazia. 29. ^ Daniel Mitchell. "Albania Joins the Flat Tax Club." Cato at Liberty, 9 April 2007. [3] (http://www.cato-atliberty.org/2007/04/09/albania-joins-the-flat-tax-club/) 30. ^ Jonilda Koci. "Albanian government approves 10% flat tax". Southeast European Times, 4 June 2007. [4] (http://www.balkantimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2007/06/04/feature-03) 31. ^ a b c d e f g h i j k l m n o p q r s t u v w x The 2011 global executive (http://www.ey.com/Publication/vwLUAssets/2011_global_executive_guide/$FILE/2011_global_executive_guide.p df) , Ernst & Young, August 2011. 32. ^ Andorra Undertakes First Phase Of Tax Regime Overhaul (http://www.taxnews.com/news/Andorra_Undertakes_First_Phase_Of_Tax_Regime_Overhaul____49056.html) , Tax-News.com, April 29, 2011. 33. ^ Interim Stabilisation Levy Act (http://www.gov.ai/documents/Vol%2038%20Monday%207th%20March%202010%20No4.pdf) , Government of Anguilla, March 7, 2011. 34. ^ Belize Tax Rates (http://www.taxrates.cc/html/belize-tax-rates.html) , TaxRates.cc. 35. ^ Law on income tax (http://www.fmf.gov.ba/download.php?id=budzet08/Zakon%20o%20porezu%20na%20dohodak%20(bosanski%20jezik).pdf) , Federation of Bosnia and Herzegovina. (Bosnian), (Croatian), (Serbian)
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Flat tax - Wikipedia, the free encyclopedia Herzegovina. (Bosnian), (Croatian), (Serbian) 36. ^ Bosnia and Herzegovina Tax Rates (http://www.taxrates.cc/html/bosnia-herzegovina-tax-rates.html) , TaxRates.cc. 37. ^ Bulgarian parliament approves 2008 budget that foresees record 3 percent surplus (http://www.iht.com/articles/ap/2007/12/20/business/EU-FIN-ECO-Bulgaria-Budget.php) , The Associated Press. 38. ^ A guide for income taxpayers (http://www.mof.gov.tl/wpcontent/uploads/2010/07/G5_Iincome_Tax_Guide_2008_Final_Eng.pdf) , Ministry of Finance of East Timor, June 30, 1905. 39. ^ Alvin Rabushka. "Estonia Plans to Reduce its Flat-Tax Rate." 26 March 2007. [5] (http://www.hoover.org/research/russianecon/essays/6711412.html) 40. ^ Toby Harnden. "Pioneer of the 'flat tax' taught the East to thrive." Telegraph, 9 April 2005.[6] (http://www.telegraph.co.uk/news/main.jhtml? xml=/news/2005/09/04/nflat104.xml&sSheet=/news/2005/09/04/ixhome.html) 41. ^ a b c d e f g Michael Keen, Yitae Kim, and Ricardo Varsano. "The 'Flat Tax(es)': Principles and Evidence." IMF Working Paper WP/06/218.[7] (http://www.imf.org/external/pubs/ft/wp/2006/wp06218.pdf) 42. ^ Alvin Rabushka. "The Flat Tax Spreads to Georgia." 3 January 2005 (http://www.russiaeconomy.org/comments/010305.html) 43. ^ Invest in Greenland (http://uk.nanoq.gl/~/media/018c30ddd63e44b1bdc3a612e8facd0f.ashx) , Branding Greenland, July 1, 1905. 44. ^ Grenada Tax Rates (http://www.taxrates.cc/html/grenada-tax-rates.html) , TaxRates.cc. 45. ^ a b c d Alvin Rabushka. "Flat and Flatter Taxes Continue to Spread Around the Globe." 16 January 2007.[8] (http://www.hoover.org/research/russianecon/essays/5222856.html) 46. ^ Guyana Tax Rates (http://www.taxrates.cc/html/guyana-tax-rates.html) , TaxRates.cc. 47. ^ http://ec.europa.eu/economy_finance/publications/publication415_en.pdf 48. ^ The Economist Intelligence Unit, Kazakhstan fact sheet. "In 2007 Kazakhstan introduced several changes to the taxation system. The flat-rate VAT on all goods was reduced from 15% to 14%, and a flat rate of income tax of 10% was introduced, in place of the previous progressive range of 520%." [9] (http://www.economist.com/countries/Kazakhstan/profile.cfm?folder=Profile-FactSheet) 49. ^ What should a foreigner know about Kyrgyzstan's tax system (http://www.timesca.com/index.php/free-newsletter/legal-opinion/5988-what-should-a-foreigner-know-about-kyrgyzstans-tax-system) , The Times of Central Asia. 50. ^ Alvin Rabushka. "A Competitive Flat Tax Spreads to Lithuania." 2 November 2005.[10] (http://www.russianeconomy.org/comments/110205.html) 51. ^ "The lowest flat corporate and personal income tax rates." Invest Macedonia government web site. Retrieved 6 June 2007. [11] (http://www.investinmacedonia.org/news.aspx?news=35) 52. ^ Alvin Rabushka. "The Flat Tax Spreads to Mongolia." 30 January 2007 (http://www.hoover.org/research/russianecon/essays/5471761.html) 53. ^ Alvin Rabushka. "The Flat Tax Spreads to Montenegro." 13 April 2007 (http://www.hoover.org/research/russianecon/essays/7019202.html) 54. ^ The wannabe nation of Nagorno-Karabakh (http://www.csmonitor.com/2007/0530/p20s01-woeu.html) , The Christian Science Monitor, May 30, 2007. 55. ^ Alvin Rabushka. "Russia adopts 13% flat tax." 26 July 2000 (http://www.russiaeconomy.org/comments/072600.html) 56. ^ Income Tax Ordinance (http://www.sainthelena.gov.sh/data/files/resources/688/Income-Tax-Ordinance.pdf) , Government of Saint Helena, April 1, 2012. 57. ^ Alvin Rabushka. "The Flat Tax Spreads to Serbia." 23 March 2004 (http://www.russiaeconomy.org/comments/032304.html) 58. ^ Law on the income tax on individuals (http://www.nalog-rso.ru/zakon/zakon9.php) , Committee on Taxes and Duties of the Republic of South Ossetia. (Russian) 59. ^ A Low Flat Tax Has Been Adopted in Pridnestrovie (http://flattaxes.blogspot.com/2008/11/low-flat-tax-has-beenadopted-in.html) , Alvin Rabushka, August 17, 2007. 60. ^ Lega and tax aspects of doing business in Turkmenistan 2009 (http://www.cabcglobal.com/uploads/turkmenistan_tax_and_legal_overview_2009.pdf) , Central Asia Business Consultants, August 13, 2009. en.wikipedia.org/wiki/Flat_tax 14/16
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13, 2009. 61. ^ Income Tax Act 1992 (http://www.paclii.org/tv/legis/num_act/ita1992116/) , Pacific Islands Legal Information Institute. 62. ^ Alvin Rabushka. "The Flat Tax Spreads to Ukraine." 27 May 2003 (http://www.russiaeconomy.org/comments/052703.html) 63. ^ What are the income tax rates in Canada? (http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html) , Canada Revenue Agency, 2012. 64. ^ a b c d e f g h i State Individual Income Tax Rates (http://taxfoundation.org/sites/taxfoundation.org/files/docs/state_individualincome_rates-2000-201220120216_july12.pdf) , Tax Foundation, 2011-2012. 65. ^ a b c Local Income Tax Rates by Jurisdiction (http://taxfoundation.org/sites/taxfoundation.org/files/docs/localincometax-rates_by_jurisdictions-2011-20110831.pdf) , Tax Foundation, 2011-2012. 66. ^ Daniel Mitchell. "Fixing a Broken Tax System with a Flat Tax." Capitalism Magazine, 23 April 2004.[12] (http://www.capmag.com/article.asp?ID=3636) 67. ^ GOVHK: Tax Rates of Salaries Tax & Personal Assessment (http://www.gov.hk/en/residents/taxes/taxfiling/taxrates/salariesrates.htm) 68. ^ Pricewaterhouse Coopers: 2004/2005 Hong Kong Budget Tax Rates Card (http://web.archive.org/web/20070302005702/http://www.pwchk.com/home/eng/hktax_rates_card_2004.html) . 69. ^ Duncan B. Black. "Fund wrong on Hong Kong 'flat tax'." Media Matters, 28 Feb 2005. [13] (http://mediamatters.org/items/200502280004) 70. ^ Alan Reynolds. "Hong Kong's Excellent Taxes." townhall.com, but the column was syndicated. 6 June 2005. [14] (http://www.cato.org/pub_display.php?pub_id=3793) 71. ^ a b c Flat tax roundup December 2012 (http://flattaxes.blogspot.com/2012/12/flat-tax-roundup-december2012.html) , Alvin Rabushka, December 29, 2012. 72. ^ Iceland Comes in From the Cold With Flat Tax Revolution (http://www.cato.org/publications/commentary/iceland-comes-cold-flat-tax-revolution) , The Business, March 21, 2007. 73. ^ Iceland abandons the flat tax (http://flattaxes.blogspot.com/2010/03/iceland-abandons-flat-tax.html) , Alvin Rabushka, March 16, 2010. 74. ^ "Abbott floats tax idea (http://www.abc.net.au/lateline/content/2010/s3052580.htm) ", Australian Broadcasting Corporation 75. ^ "Abbott's flat tax reform 'unfair' (http://www.abc.net.au/news/stories/2010/10/29/3052379.htm) ", Australian broadcasting corporation 76. ^ "Abbott promises voter 'conversation (http://news.smh.com.au/breaking-news-national/abbott-promises-voterconversation-20101201-18ggz.html) ", Sydney Morning Herald 77. ^ "Samgonguskjal millum Sambandsflokkin, Flkaflokkin, Miflokkin og Sjlvstrisflokkin (http://tinganes.fo/Files/Filer/fylgiskjoel%20til%20tidndi/Samgonguskjal%20ABDH.pdf) ", Prime Minister's Office. 2011. 78. ^ http://www.nordlysid.fo/Default.aspx?ID=42&Action=1&NewsId=10490&PID=3773 79. ^ " 15% " (http://www.naftemporiki.gr/news/cstory.asp?id=2141801) (in Greek). www.naftemporiki.gr. 24 February 2012. Retrieved 24 February 2012. 80. ^ Trefgarne, George (15 August 2005). "Greece joins the flat rate tax bandwagon" (http://www.telegraph.co.uk/finance/2920635/Greece-joins-the-flat-rate-tax-bandwagon.html) . The Telegraph. Retrieved 24 February 2012. 81. ^ "Flat tax rate on the cards." Kathimerini. 11 July 2005 (http://www.ekathimerini.com/4dcgi/_w_articles_politics_100005_11/07/2005_58468) 82. ^ "Poland brings in flat tax (http://www.adamsmith.org/blog-archive/001120.php) ", Adam Smith Institute 83. ^ a b c [15] (https://www.cia.gov/library/publications/the-world-factbook/geos/lh.html) 84. ^ a b Niedrige Steuer fr alle: Osteuropa: Einige Lnder haben die Einheitssteuer. Doch sie ist umstritten | ZEIT online (http://www.zeit.de/2005/36/Osteuropa) 85. ^ Tenbrock, Christian (1 September 2005). "Niedrige Steuer fr alle. Osteuropa: Einige Lnder haben die Einheitssteuer. Doch sie ist umstritten" (http://www.zeit.de/2005/36/Osteuropa) (in German). http://www.zeit.de. Retrieved 2 February 2012.
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Retrieved 2 February 2012. ^ Central Eastern Europe and the Flat Tax a follow up (http://transitioneconomies.blogspot.com/2006/11/central-eastern-europe-and-flat-tax.html) ^ [16] (http://www.mfa.gov.hu/NR/rdonlyres/68F5E85D-7062-4001-8FD87946055579B3/0/Hungaryflatratepersonalincometax.pdf) ^ Wages and Taxes for the "Average Joe" in the EU 27 (http://www.langlophone.com/20100526_edition/20100526_EU27_data_table_flipped.pdf) ^ Belgian Workers Wages are Highest-Taxed in Western Europe. Flat tax? Read the Fine Print (http://www.langlophone.com/fullbn.php?id=419)
References
Steve Forbes, 2005. Flat Tax Revolution. Washington: Regnery Publishing. ISBN 0-89526-040-9 Robert Hall and Alvin Rabushka, 1995 (1985). The Flat Tax (http://wwwhoover.stanford.edu/publications/books/flattax.html) . Hoover Institution Press. Richard Parncutt, 20062010. Free enterprise without poverty: Effectively progressive income tax.[17] (http://www.uni-graz.at/~parncutt/BIFT2.html) . Anthony J. Evans, "Ideas and Interests: The Flat Tax (http://www.openrepublic.org/open_republic/20050701_vol1_no1/articles/20050619_ft.htm) " Open Republic 1(1), 2005
External links
The Laffer Curve: Past, Present and Future (http://www.heritage.org/Research/Taxes/bg1765.cfm) : A detailed examination of the theory behind the Laffer curve, and many case studies of tax cuts on government revenue in the United States Podcast of Rabushka discussing the flat tax (http://www.econtalk.org/archives/2007/04/rabushka_on_the.html) Alvin Rabushka discusses the flat tax with Russ Roberts on EconTalk. Podcast of Rabushka discussing the flat tax (http://politalkshow.com/2010/09/20/episode-96-the-flat-tax/) Alvin Rabushka discusses the flat tax on PoliTalk (http://politalkshow.com/) . The Flat Tax: How it Works and Why it is Good for America (http://freedomandprosperity.org/2010/videos/the-flat-tax-how-it-works-and-why-it-is-good-for-america/) Retrieved from "http://en.wikipedia.org/w/index.php?title=Flat_tax&oldid=542660558" Categories: Tax reform Taxation and redistribution This page was last modified on 7 March 2013 at 20:18. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
en.wikipedia.org/wiki/Flat_tax
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