AWAY WITH HIGH TAXES! Rate of income tax increases the more you - TopicsExpress

AWAY WITH HIGH TAXES! Rate of income tax increases the more you earn. This is known as a PROGRESSIVE TAX and is true for most countries. Progressive tax is a disincentive to extra work, savings and investment. In 1985 Hall and Rabushka, American authors proposed a new system of FLAT RATE tax. Under this system employees would be taxed at a low flat rate after deducting some personal expenses. Businesses would be taxed on their sales less their purchases (taxed on suppliers), salaries and wages (taxed on employees) and cost of plant & equipment (to encourage investment). Savings and Investment income would not be taxed. This sytem has been tried in Hong Kong, Jersey, Russia and Estonia. IT WORKS.

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