13/10/2005 10:02:39 am
Flat tax = High Economic Growth. Flat tax - that everyone pays the same percentage in tax - is increasingly common. One argument for it has been that work, education and enterprise gets more profitable, thus enhancing growth. And the empirical evidence confirms that more by the day. Of course flat tax is not the only reason for high growth in these countries - the low level, for one thing, also explains a lot - but it is one part. Below are the countries with flat tax, what level and what rate of economic growth they had last year.

Estonia 24% 4,8%

Georgia 12% 5,5%

Hong Kong 16% 2,9%

Latvia 25% 6,8%

Lithuania 33% 7,1%

Romania 16% 4,5%

Russia 13% 7,3%

Serbia 14% 2,0%

Slovakia 19% 3,9%

Ukraine 13% 8,2%