Friday, November 26, 2010

Bing Crosby Sings Out For The Flat Tax

A new rendition of Bing Crosby’s famous song is available for this year’s holiday season.

I’m dreaming of a low flat tax
Just like the ones in Eastern Europe
Where the forms are simple
And the rates are low
And their economies flourish and grow.

I’m dreaming of a low flat tax
With every holiday card I write
May your days be merry and bright
And may all your taxes be flat and light.

Happy caroling.

Wednesday, November 24, 2010

Thanksgiving: Giving Thanks for the Flat Tax

Romania: On November 22, 2010, Romania’s Senate adopted a draft law by a 54 to 31 vote to reduce the flat tax from its current 16% rate to 10%.  Proposed by Economy Minister Ion Ariton, the bill was supported by opposition lawmakers.  The argument in support of the 10% rate was that it would both generate growth and increase revenue.

If the larger Chamber of Deputies approves the rate reduction, it will become law.

As expected, the IMF urged Romania not to lower its flat rate to 10%, insisting that a rate cut would reduce revenue.  Stay tuned!

Estonia: In a recent radio interview, Prime Minister Andrus Ansip defended the flat tax, rejecting a proposal by the opposition Center Party to switch to a graduated rate system.  Ansip pointed out that Estonia has the lowest public debt in the EU, which could be paid off using reserve funds.  In his view, the flat tax was instrumental in Estonia having the highest growth rate in the EU during the past decade.

Hungary: As previously blogged, Hungary joined the league of flat-tax members, enacting a 16% flat rate on personal income effective January 1, 2011.

For more information on these and other countries, check out Google Blog search and Google News on the flat tax.

Sunday, November 14, 2010

Poland’s Finance Minister Talks Up Flat Tax

Polish Market Online reported on November 12, 2010, that Finance Minister Jacek Rostowski told Dziennik Gazeta Prawna newspaper that he would eventually like to introduce a flat tax. to replace the country's current two rates of 18% and 32%.  He gave no specific date.  The objective would be to strengthen growth. and would place Poland in the same low, flat-rate competitive league with neighboring flat tax countries

Saturday, November 6, 2010

Hungary Enacts a Flat Tax

The Budapest Times issue of October 27, 2010, reported that Hungary’s Parliament approved the government’s proposal for a flat tax. Beginning January 1, 2011, personal income tax will be set at a flat rate of 16%. The 16% flat rate replaces the current two bracket system of 17% and 32%.