Study
| EST. READ TIME 2 MIN.Lessons from Abroad: Flat Tax in Practice
There are now more than 20 jurisdictions using the flat tax and this number is expected to continue growing, most of the nations are transition economies in Eastern and Central Europe but there are a handful of wealthy economies that use this simple and fair tax system. The international evidence, shows clearly that Canada would benefit greatly from adopting the flat tax.
The North American discussion of the flat tax could be characterized as nice theory, but not practical. Some doubters think a flat tax would not work if it were implemented. Others think that ideological objections are too formidable or that beneficiaries of current tax preferences are too powerful to overcome, meaning a flat tax will never get enacted.
In truth, the flat tax is anything but a policy experiment. There are now more than 20 jurisdictions using the flat tax and this number is expected to continue growing. Most of the flat-tax nations are transition economies in Eastern and Central Europe but there are a handful of wealthy economies that use this simple and fair tax system. In other words, the flat tax is a proven instrument of sound fiscal policy. The international evidence, combined with traditional research on tax policy, shows clearly that Canada would benefit greatly from adopting the flat tax.
Lessons from Abroad - Flat Tax in Practice is a chapter from a forthcoming book on tax reform to be published later this year by The Fraser Institute.
Share
-
Daniel J. Mitchell
Daniel J. Mitchell is a co-founder and president of the Center for Freedom and Prosperity and the Center for Freedomand Prosperity Foundation. Dr. Mitchell holds a Ph.D. in Economics from George Mason University and master’s and bachelor’s degrees in economics from the University of Georgia. Dr. Mitchell was a senior fellow with the Cato Institute and The Heritage Foundation, and an economist for Senator Bob Packwood and the Senate Finance Committee. He also served on the 1988 Bush/ Quayle transition team and was Director of Tax and Budget Policy for Citizens for a Sound Economy.… Read more Read Less…
Related Topics
Related Articles
By: Jake Fuss and Grady Munro
By: Jake Fuss and Grady Munro
By: Ben Eisen and Jake Fuss