Conservatives Love...
Flat taxes!
Take a look at the chart. First as any first year political science student should know correlation does not imply causation. So assuming that a flat tax in each of these countries is solely responsible for their high GDP growth rates is facetious. Second all these countries have low GDP compared with the rest of the developed world. Obviously a Lithuania's GDP growth rate of 7.1% cannot be achieved for long periods of time by the massive American economy even with a flat tax. Its always easier to grow proportionally larger when you are small.
The flat tax works well in developing countries where collecting tax revenue from the rich is complicated due to a variety of loopholes the wealthy exploit to avoid paying taxes. The flat tax is a simple and efficient way for developing countries to collect revenue from the rich. Not for rich nations who desire a progressive and fair tax system.
Our tax system does need reform, but a flat tax is not the answer.
Take a look at the chart. First as any first year political science student should know correlation does not imply causation. So assuming that a flat tax in each of these countries is solely responsible for their high GDP growth rates is facetious. Second all these countries have low GDP compared with the rest of the developed world. Obviously a Lithuania's GDP growth rate of 7.1% cannot be achieved for long periods of time by the massive American economy even with a flat tax. Its always easier to grow proportionally larger when you are small.
The flat tax works well in developing countries where collecting tax revenue from the rich is complicated due to a variety of loopholes the wealthy exploit to avoid paying taxes. The flat tax is a simple and efficient way for developing countries to collect revenue from the rich. Not for rich nations who desire a progressive and fair tax system.
Our tax system does need reform, but a flat tax is not the answer.
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