Monday, June 25, 2007

26% Flat Tax Rate

We should all learn from the tiny country of Estonia....

"Estonia adopted a 26% flat tax in 1994 and never looked back. Combined with other free–market reforms, the flat tax has helped Estonia become one of the world’s fastest–growing economies. Tallinn is now a boom town, filled with expensive cars, elegant shops, trendy restaurants and new construction. Estonia’s system is not a completely pure version of the flat tax model. But it is remarkably free from distortions, exemptions, loopholes and penalties. The flat rate applies to both personal income and business income."

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