Flat is Beautiful

As government does more and more for us, or in spite of us, the tax system has become more and more complicated. Today's tax codes and laws have taken a page from the famous Engima codes, incomprehensible even to most experts. All of this complexity has a negative impact on economic behaviour, with discincentives to save, invest and work... and props up an industry of tax lawyers and accountants. Simpler, flatter and lower....the radical idea is catching on.

Jurisdictions all around the world are reaping the benefits of being simple, scrapping several rates of income taxation and a myriad of exemptions and deduction for a uniform rate with a generous basic personal exemption. So far Estonia, Russia, Slovakia, Serbia, Slovakia, Poland, Hungary and Hong Kong are proving that Flat is beautiful.... Government revenues rise, tax avoidance and administration decline, work, investment and economic growth flourish.

It's time the new world, look to the old country for reforms. It used to be the other way around but we have become comfortable on our North American island, it's time break out. Check out my latest commentary on our website, "The Benefits of Being Simple"