Washington's deficit-driven interventions in the American economy since the 2008 Wall Street meltdown have led some to trumpet eastern Europe's experience with flat taxes as proof they would work in the U.S.
In eastern Europe, however, where growth percentages have long outpaced those in western Europe and the U.S., right-leaning economists with advice from Americans like Rabushka have lobbied successfully for flat taxes. Since Estonia implemented one in 1994, most of eastern Europe, including Russia but excluding major holdouts Hungary and Poland, have opted for a flat tax.
Print 1995) (discussing background of flat tax proposals and several technical aspects relating to implementation); Michael Calegari, Flat Taxes
and Effective Tax Planning, 51 NAT'L TAX J.
A portion of those t surveyed were given a copy of the executive summary from the AICPA's Flat Taxes
and Consumption Taxes: A Guide to the Debate before they were interviewed.
There are two kinds of flat taxes
federal candidates and Congress are considering which have one common characteristic, but significant differences.
Cal Jillson, a political science professor at Southern Methodist University, said discussion of flat taxes
and consumption taxes works well politically with Republican voters, but described them as "pie-in-the-sky, no-way-in-hell" proposals that won't ever muster enough support in Congress.
(Instead, you should read "Flat Taxes
and Consumption Taxes: A Guide to the Debate," published by the AICPA Tax Division in 1995.) But for most CPAs, even those whose practice is heavily tax-oriented, this book provides an excellent primer, and the little time it takes to read it will pay off many times by giving you a basic understanding of where we are in our tax system, how we got here and where we may well be headed.
The report, Flat Taxes
and Consumption Taxes: A Guide to the Debate, was released in January and is the result of a two-year effort by the AICPA tax division.
It would also have to be approved by Congress, which economists and political analysts say is unlikely, given the reality that flat taxes
tend to hit the middle class hardest and the rejection of previous, similar tax proposals.
There are significant obstacles in the path of adoption of any form of consumption or flat taxes