To improve the investment climate in the African island nation of Madagascar, located off the southeast coast of the African continent, the government’s 2010 budget reduced the flat-rate personal income tax from 24% to 23%, with a personal allowance of MGA 250,000 (US$1 = Malagasy Ariary 1,942), about $125 per month, or $1,500 a year. Corporation tax was incorporated into the income tax code at the same 23% rate.
How long have they been doing this? Love to see the GDP results before and after establishing flat tax. Great example to learn about and now follow. My understanding is the flat tax petition signed 80k new names in lady couple days! What will it take for America to get smart?
ReplyDeleteBasic, grade 12 economics points out reasons why the flat tax is a bad policy idea. Concepts are described in the following video:
ReplyDeletehttp://www.youtube.com/watch?v=zvnpmFveXzA