The Derbmiester and Supply-Side Econ.
John Derbyshire at The Corner notes some Supply Side Magic….
LESSONS FROM A SMALL COUNTRY [John Derbyshire]
[Sigh] “Filing an annual tax return online, as 80% of Estonians do, takes a few minutes.”
Processing these tax returns takes an average five days.
Estonia has a flat tax of 24% on personal and corporate income.
“Estonia’s economy showed 9.9% year-on-year growth in the latest quarter — Europe’s fastest rate.”
[Figures & quotes from The Economist 10/15/05.]
No word from The Derb on increased revenue to the Estonian government; Betcha a Beignet to a Doughnut that Estonian government revenues have increased with the decreased tax burden.
If, (pardon me while I chow on my Beignet’s) Estonian gov’t revenues are indeed up, then this represents an excellent opportunity to find the optimal point on the
Hey! Estonia, cut your flat rate to below God’s tithe rate and I bet you a dozen Beignets to one of your doughnuts* that your revenues will go up further!.
Another blessing of the Reagan Revolution–pity GWB is no Reagan or we could have the same here..
*Assuming Estonian’s have real doughnuts. (: