The Flat Tax at Work in Albania: Year One
Beginning January 1, 2008, Albania implemented a 10% flat tax on corporate and personal income. The 10% personal rate replaced five rates that peaked at 30% while the 10% corporate rate was halved from the previous 20% rate. Despite the reduction in rates, total revenues increased from LEK 125 billion in 2007 to LEK 148 billion in 2008, an increase of 18.4%. ($1.00 = LEK 96.71). With inflation a modest 3% in 2008, real inflated-adjusted revenue rose 15.2%.
One other development in the flat tax world is worth noting. On January 1, 2009, Latvia’s personal income tax rate fell from 25% to 23%.
Beginning January 1, 2008, Albania implemented a 10% flat tax on corporate and personal income. The 10% personal rate replaced five rates that peaked at 30% while the 10% corporate rate was halved from the previous 20% rate. Despite the reduction in rates, total revenues increased from LEK 125 billion in 2007 to LEK 148 billion in 2008, an increase of 18.4%. ($1.00 = LEK 96.71). With inflation a modest 3% in 2008, real inflated-adjusted revenue rose 15.2%.
One other development in the flat tax world is worth noting. On January 1, 2009, Latvia’s personal income tax rate fell from 25% to 23%.
In the early 1980's I read your book on the simple flat tax when doing graduate studies at NYU. I really loved what you had to say and ever since I have been preaching flat-tax in some of my simple writings. Oh, I wish the USA could have a flat tax system. Yes, it seems politically not feasible as it will take a lot of guts for a senior politician to push this agends.
ReplyDeleteExcellent job , great posting for this site ,lovely and Faboulious,Awesome writing,cool
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