Flat taxes, once a fantasy of free-market ideologues, are sweeping across the European Union and could be introduced in more than 10 of the bloc's 25 member states.If it's good enough for Europeans, it should be good enough for Democrats...
The European commissioner for taxation, Laszlo Kovacs, described flat taxes, - one rate for all income and corporate taxation - as "absolutely legitimate" and said Western European nations may be tempted to adopt them. His comments will fuel debate that low-tax, low-cost economies of the East are undercutting Europe's industrial heartland.
In place in Slovakia and the three Baltic states, which joined the EU last year, flat taxes are credited with helping them grow fast and creating thousands of jobs. French politicians have led complaints about "social dumping" and the risk to their employment and social standards. Others argue that such a regressive system, under which a millionaire and a road-sweeper pay the same rate, can never be fair.
Mr Kovacs, a former Hungarian foreign minister, said: "As far as the position of the EU is concerned, we consider it as absolutely legitimate because the EU does not tackle the issue of income and corporate tax rates.
"Four countries have introduced it and are satisfied, and they claim that it works properly. Some six or seven are considering flat taxes - that makes 10 or 11 member states that could introduce flat tax.
What would Neal Boortz think?
Mark's Remarks
Having just gotten my taxes in before the deadline after a month of sorting out the new form I had to file due to some investments, I know a flat tax would be much easier bureaucracy wise, but I wonder really about economically wise, what it would do to consumption.
