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« Trivia Tidbit Of The Day: Part 172 -- Benefits Of Economic Freedom. | WILLisms.com | THE CARNIVAL OF THE CAPITALISTS. »

Trivia Tidbit Of The Day: Part 173 -- The Flat Tax Works.

Flat Taxes In Eastern Europe-

COUNTRIES that have adopted a flat tax are growing twice as fast as those that haven't, research out this weekend confirms.

Since 1995, eastern European countries with a flat tax have enjoyed an average annual gross domestic product (GDP) growth rate of 5.3%, compared with only 2.6% among those without, research by the Reform think-tank shows. A weighted average of the flat-taxers confirms this finding and reveals they have grown faster in eight out of the past 10 years.

The research also reveals cutting tax rates need not mean a collapse in tax receipts, thanks to positive growth effects and a reduction in tax evasion.

In Slovakia, the most developed of the flat-tax nations, total revenues fell in the first flat-tax year by only 0.2% of GDP, from 25.5% to 25.3%, according to Jaroslav Belas, professor at the Economic University of Bratislava, in a separate paper on the Slovak reforms to be published by Reform next month.


The Business Online
(via Club For Growth blog).


Previous Trivia Tidbit: Economic Freedom Is The Answer.

Posted by Will Franklin · 18 September 2005 10:22 AM


Keep the pressure on, Will. If words won't persuade, your graphs and tables should.

Did you catch Steve Forbes' earnest defense of his plan on C-SPAN this weekend?

The guy should be Knighted, or the yankee equivalent, for his performance. It takes a hell of a lot of patience to sit across from a Clinton cabinet appointee and explain - for a third time - that tax policy is not a "zero-sum game."

Posted by: Steve at September 19, 2005 10:19 AM

Yeah, I've tried explaining that same thing to so many people. Our economy is nearly 12 trillion dollars a year. But it could be 6 trillion. Or 20 trillion. Or half a trillion. It could be much smaller or much larger if we had made different choices along the way. Policy matters.

Posted by: Will Franklin at September 19, 2005 11:42 AM