More on the flat tax

In today's Wall Street Journal an editorial piece discusses the benefits of going to a flat tax. I find that often I disagree with editorials from the WSJ, but today is not one of those instances; today I stand in full agreement w/ them.

What's interesting is that the idea of a flat tax was born in the US but it has been adapted by countries previously under the rule of Communism. Liberals tend to disagree with this model because it is not progressive and they claim the middle and lower income folks pay more that the rich. Not so, according to economic modeling done by John C. Goodman of Forbes and Laurence Kotlikoff of Boston University. Also according to the WSJ

Russia, for example, has reported that it now gets more tax revenues from the rich from its 13% flat tax than from its pre-existing Swiss cheese tax code with massive evasion and 50%-plus tax rates. Russia's revenues with the flat tax grew in real terms by 28% in 2001, 21% in 2002, and 31% in 2003, according to a recent analysis by the Hoover Institution. If the U.S. had that kind of revenue growth, our politicians would be wringing their hands over what to do with budget surpluses.

The bottom line is this: tax reform is needed and is needed now. The rich can afford to pay to find way to avoid putting money on the government coffers while middle and low income erners get by few exceptions. The time is now, let's make it happen.

Alb