Quote:
Originally posted by MegaPussy
Using Russia for a model of capitalist success is not exactly the most persuasive argument.
- Titus
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That wasn't the argument.
The argument was that a flat income tax rate of 15% would generate more in actual tax dollars collected than the current system.
That as that Russia has beaten the majority of the civilized world to the punch with its flat tax reform.
Bashing Russia is not exactly the most pervasive argument against a flat tax either.
Here are a few facts about the Russian tax system:
Since changing to the flat tax system on January 1, 2001, Russians have paid a 13% flat tax as opposed to paying the old rates of 12%, 20%, and 30%.
As of early 2002, the Russian government had seen a 28% in real ruble revenue.
In the three year period preceding November 2001 tax revenue had increase from 9-10% of the national GDP to 16%.
You can argue about higher revenues from and the societal benefits of a progressive tax system until you are blue in the face, but at the end of the day you'll still be wrong... but hey at least you'll have that blue face.
Government revenues increase upon the adoption of flat tax systems (that close tax loopholes) at lower marginal rates.
Read up on the Laffer Curve.