Flat Tax Reform in Slovakia: Lessons for the United States

November 14, 2006

Since January 2004, Slovakia has had a flat tax on income, consumption, and corporate profits. Most other taxes and tax exemptions were eliminated. Other formerly, communist countries, including Estonia, Georgia, Latvia, Lithuania, Romania, Russia, Serbia, and Ukraine, have also adopted flat tax rates. Unfortunately, in the United States, where the idea of a flat tax originated, the tax code remains absurdly complicated and inefficient. Ivan Miklos will evaluate the performance of the new tax system and explain how the Slovak government overcame special interests opposed to reform. Chris Edwards will assess the chances for a meaningful tax reform in the United States.


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