Estonia adopted a 26% flat tax in 1994 and never looked back

When it comes to taxation, some of the most competitive economies suddenly look more like developing countries. America’s tax system is among the worst, with those in Western Europe not far behind. According to the World Bank, only four other nations, including Britain, have longer tax codes than the U.S. The World Economic Forum is not quite as generous: In a recent global tax–efficiency ranking, it awarded last place to the U.S., an “honor” frequently bestowed on Germany in the past. Several factors make these countries’ tax systems uncompetitive, including high rates on savings and investments, mind–numbing complexity, and, in America’s case, the self–destructive practice of world–wide taxation.

Anyone interested in seeing first–hand what a simple and fair tax system can help accomplish should visit Estonia…..read more 

Baltic Beacon

by Daniel J. Mitchell

2 Responses to “Estonia adopted a 26% flat tax in 1994 and never looked back”

1. steadyjohn Says:
   June 24th, 2007 at 4:39 pm

   I am totally in favor of a flat or “fair” tax for the U.S. but have always thought of such a scheme as a single tax system; either a single rate on all income or a national sales or VAT.In the article about Estonia’s tax system it appears that they have both a double digit tax on all earnings and an 18% VAT. This seems like a huge tax burden and leaves me wondering if the story is accurate in this regard.

2. Patrick Henry Says:
   June 25th, 2007 at 12:21 pm

   Could not agree more.

   I linked in that post because I like the simplicty of the flat tax. When ever I start a new venture the second thing on my list to ponder is the tax implications. I am sick and tired of hearing, “you need to consult with a tax professional”. How many starts can “consult a tax pro”?

   How many business starts have died on the drawing board because on tax implication uncertainly??? We will never know.

   Thanks for reading and the comment.

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