Paul L. Caron
Dean





Saturday, October 8, 2005

The Flat Tax and Economic Growth: The International Experience

Interesting editorial in Friday's Wall Street Journal, The World is Flat:

Sooner or later it had to happen: The mainstream press is finally discovering the flat-tax movement that has been sweeping Europe....  By our count, this brings to 11 the number of nations with a single-rate, postcard tax system. More dominoes are expected to fall in the next few years.

The WSJ published a table showing the flat tax rates in these eleven countries.  I have added below the 2004 GDP growth rates in these countries, which in 9 of 11 cases exceeds the average 3.4% worldwide growth rate of major industrialized countries:

Flat Tax Rates and GDP Growth Rates

Country

Flat Tax Rate

GDP Growth Rate

Estonia

24%

4.8%

Georgia

12%

5.5%

Greece

25%

4.0%

Hong Kong

16%

2.9%

Latvia

25%

6.8%

Lithuania

33%

7.1%

Romania

16%

4.5%

Russia

13%

7.3%

Serbia

14%

2.0%

Slovakia

19%

3.9%

Ukraine

13%

8.2%

https://taxprof.typepad.com/taxprof_blog/2005/10/the_flat_tax_an.html

News | Permalink

TrackBack URL for this entry:

https://www.typepad.com/services/trackback/6a00d8341c4eab53ef00d83423153053ef

Listed below are links to weblogs that reference The Flat Tax and Economic Growth: The International Experience:

» Flat tax from David Boyd
There was an editorial in Friday's WSJ regarding all the countries in Eastern Europe who are going to the flat tax and some that have gone to the flat tax lowering it further. Western Europe is up in arms about it as you can imagine. This... [Read More]

Tracked on Oct 9, 2005 4:42:55 AM

» The Flat Tax and Economic Growth from The New Editor
People should pay more attention to the data, as TaxProf Blog notes. (via Andrew Sullivan) [Read More]

Tracked on Oct 9, 2005 8:07:12 PM

» Flat Tax: Greater Growth vs. Wealth Distribution from The Daily Bubble
Should America adopt a flat tax? There is strong evidence that flat tax countries are growing more quickly. Their appeal is simple: flat taxes are easy to understand and harder to avoid. You can read the theoretical case for flat taxes and even how a f... [Read More]

Tracked on Oct 10, 2005 6:22:53 AM

» Flat Tax: Greater Growth vs. Wealth Distribution from The Daily Bubble
Should America adopt a flat tax? The appeal is simple: flat taxes are easy to understand and hard to avoid. Now there is strong evidence that flat tax countries are growing more quickly. This doesn't prove a causal relationship, but it's certainly comp... [Read More]

Tracked on Oct 10, 2005 7:01:31 AM

» Flat Tax: Greater Growth vs. Wealth Distribution from The Daily Bubble
Should America adopt a flat tax? The appeal is simple: flat taxes are easy to understand and hard to avoid. Now there is strong evidence that flat tax countries are growing more quickly. This doesn't prove a causal relationship, but it's certainly comp... [Read More]

Tracked on Oct 10, 2005 1:15:33 PM

» Flat Tax: Greater Growth vs. Wealth Distribution from The Daily Bubble
Should America adopt a flat tax? The appeal is simple: flat taxes are easy to understand and hard to avoid. Now there is strong evidence that flat tax countries are growing more quickly. This doesn't prove a causal relationship, but it's certainly comp... [Read More]

Tracked on Oct 10, 2005 1:41:29 PM

» The Flat Tax & GDP Growth from Ace of Spades HQ
Tax Prof quotes a WSJ piece noting the popularity of the Flat Tax in Eastern Europe, and the high GDP growth rates it might be prompting. (Course, Eastern Europe could just be growing because it's a fairly advanced region coming... [Read More]

Tracked on Oct 11, 2005 10:20:17 AM