Why is this not happening, then? Because people are not aware, that they could benefit from it. If not straight away, then in the long run. These are the conclusions reached by participants in the panel on „How can the flat tax bring us closer to an economic miracle?”
The arguments „for” were brought forward by representatives of countries, who have already taken this step. Laszlo Gyerko, vice-president of the Authority for the State Asset Recovery in Romania explained, that the flat tax has made it easier to create special zones for investors, while Ivan Miklos, former Finance Minister of Slovakia, said that it is a prerequisite to fast economic growth.
– Last year we achieved a GDP growth rate in the order of 10.5 percent – Miklos said. In his view, in the long run tax revenues increase, for example through higher employment. A simple flat tax is also an incentive to invest.
Taavi Veskimagi, Estonia’s Finance Minister, pointed out, however, that a flat tax can have a growth-enhancing effect, but that other reforms are also required, promoting higher employment and increased capital inflows. – A tax reform should be a part of a broader set of reforms, which a government should also undertake at the same time – he said.
