HobbsOnline

Steaming hot commentary on journalism, Tennessee, politics, economics, the war and more...

Name:
Location: Nashville, Tennessee, United States

3/22/2002

Tax Reform Russian-style - The old "Evil Empire" now has the most economically advantageous and fair income tax among industrialized countries. Check out this National Review article on the salutary effects of the 13 percent flat tax instituted not long ago in Russia as President Vladimir Putin instituted true tax reform. The flat tax took effect in January 2001, and Russia's economy grew by more than 5 percent last year while most other nations were mired in recession. And Russian tax revenues are skyrocketing even though the tax rate now is now far below the 30 percent top rate of the old system. Preliminary government data shows -adjusted tax revenues climbed 28 last year, proving that the "class-warfare artists in Washington" are completely wrong when the demagogue against tax cuts. The Russian experience proves, again, that a low, flat tax creates rising revenues. And Russia's flat tax is less detrimental to savings and investment, the story explains, because unlike here in the US, where income is taxed both when you earn it and when you invest it, Russia does not double-tax corporate income or impose a capital-gains tax on stocks, bonds, and home sales.