Monday, July 4, 2016

Personal Income Flat Tax Retreat: Summary And Update In Chronological Order

Iceland

2007:  36% flat rate combined national and municipal
2010:  24.1%, 27%, 33% national plus additional municipal tax rates
           of 11.24-13.28%

Czech Republic

2008:  15% flat rate
2013:  15%, 22%

Slovakia

2004:  19% flat rate
2013:  19%, 25%

Albania

2008:  10% flat rate
2014:  13%, 23%

St. Helena

2012:  25% flat rate
2015:  26%, 31%

Ukraine

2004:  13% flat rate
2007:  15% flat rate
2011:  15%, 17%
2015:  15%, 20%
2016:  18%, 20%

The IMF, other global organizations, and a large majority of economists and tax specialists around the world oppose the flat tax on ideological grounds.  They have been working relentlessly for several decades to replace the flat tax with multiple, graduated rates.

Thursday, December 31, 2015

New Parties in Poland and Ireland Propose Flat Taxes

Poland

A new party, .Nowoczesna (.Modern Party) was formed in May 2015.  Its leader is Ryszard Petru. Its tax policy is an across-the-board 16% flat tax (16% personal income tax, 16% corporate income tax, and 16% value added tax).

The party received 7.6% of the vote in the October 25, 2015, parliamentary elections, coming in fourth place.  At the end of 2015, its favorability rating in the polls stood at 13%.

Ireland



Friday, March 20, 2015

Countries or Jurisdictions With a Flat Tax as of March 2015 (Includes Personal Exemption or Allowance. Effective Zero Rate on First Tranche of Earnings or Self-Employed Business Profits)

Jurisdiction Tax Rate (%)
Abkhazia 10%
Andorra 10
Anguilla 3
Belarus 12
Belize 25
Bolivia 13
Boznia and Herzegovina 10
Bulgaria 10
Czech Republic 15
Estonia 21
Georgia 20
Greenland 37
Grenada 30
Guernsey 20
Guyana 33.3
Hong Kong 15
Hungary 16
Jamaica 24
Jersey 20
Kazakhstan 10
Kyrgyzstan 10
Latvia 24
Lithuania 20
Macedonia 10
Madagascar 20
Mauritius 15
Mongolia 10
Montenegro 9
Nagorno-Karabakh 5
Pridnestrovia 10
Romania 16
Russia 13
Serbia 12
St. Helena 25
Seychelles 15
Slovakia 19
South Ossetia 12
South Sudan 10
Switzerland 11
Timor-Leste 10
Trinidad and Tobago 25
Turkmenistan 10
Tuvalu 30
Yemen 15
Notes:
Czech Republic has a Temporary 22% Upper Rate
Greenland has an Additional 5% Municipal Flat Rate
Slovakia has a Temporary 25% Upper Rate
Switzerland has an Additional 4…35% Cantonal and Municipal Flat Rate

Isle of Man is Considering a 20% Flat Tax Effective April 1, 2016

Tuesday, December 23, 2014

2014 Wrap Up: Albania Abandons Its Flat Tax

Effective January 1, 2014, Albania replaced its 10% flat tax on personal and business income with two rates of 13% and 23% on personal income and 15% on all forms of business income.  Details are here.

Left-wing politicians have been waging continuous war against those countries that have adopted a flat tax during the past quarter century. While Thomas Piketty has won a small battle in Albania, its people will be the losers in years to come.