Baghdad's Laffer Curve-The governing council comes out in favor of free trade and low taxes.

Wall St Journal ^ | 9-21-03

[SJackson]

Here's one more reason for Howard Dean and the French to deplore the liberation of Iraq: The new Iraqi Finance Minister, Kamel al-Gailani, has just announced that the country's highest marginal tax rates will be 15% -- on both individual and corporate income.

[wayoverontheright]

This is horrible, there's no way the government will be able to "create jobs" with such a paltry "investment" from the people. They need to increase these tax rates FOR THE CHILDREN, and soon, lest there be too many rich people.

[Trailerpark Badass]

When's the 3rd ID gonna spread some of that freedom around here?

[smith288]

The opposing party, Al Shiite-Al Datiime, said they will oppose these policies as they are only there to prop up the upper 3% who make 5 figures a year.

[Arkie2]

Hmm. First the Russians, now the Iraqis adopt a sensible tax code.

[PGalt]

Good news article. It makes "cents" to me. Thanks for posting it.

[smith288]

Hmm. First the Russians, now the Iraqis adopt a sensible tax code.

Give them about 250 yrs, they will come around.

[Ragtime Cowgirl]

Great post, SJackson. Amb. Bremer was right.

"In terms of what kind of economic system they wish to establish, as you point out, the Ba'athist Party was a socialist party. I think it's very hard to imagine any strong support in this country for a return to that economic system, which has left the country really flat on its back, and which does not really provide a model for getting the kind of vibrant private sector which I think most Iraqis now realize is a sine qua non for a stable economy and stable economic growth. So if they choose socialism, that will be their business. My guess is that's not going to happen." ~ Amb. Paul Bremer  - Briefing on Coalition Post-war Reconstruction and Stabilization Efforts, 6/12.

Here's one more reason for Howard Dean and the French to deplore the liberation of Iraq: The new Iraqi Finance Minister, Kamel al-Gailani, has just announced that the country's highest marginal tax rates will be 15% -- on both individual and corporate income.

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[katana]

They may be looking at what's happening in the Russian economy as an example of what low marginal tax rates can do in a get-up-off-the-floor bootstrap situation. It should be an example to everyone.

[anniegetyourgun]

You've got the idea, but there's something to be said for your methods!

[anniegetyourgun]

You're right, RC, it's a great post/find by sjackson. Good for Iraq. Here's a new motto they can adopt (and pay me a handsome fee for it?):

Prosperity to the people!

[Alamo-Girl]

Bump!

[My2Cents]

No wonder the left opposes our reconstruction efforts there.

[paws_and_whiskers]

The new Iraqi Finance Minister, Kamel al-Gailani, has just announced that the country's highest marginal tax rates will be 15% -- on both individual and corporate income.

[windchime]

Bump!

[blackie]

The governing council sounds like they're good conservatives. :)

[Ditto]

We hope the government now finds a way to turn over some oil revenue to individual Iraqis.

George Schultz had the best suggestion. Every Iraqi citizen gets an equal share of all oil profits. Let them spend or invest it as they choose.

[PhilDragoo]

Iraq wants a tax regime with "low tax rates that will help create strong incentives for future investment, employment, and limit the size of the public sector

Senator Clinton reacts.

[Spartano]

I am posting two good refences to see the effects of fiscal policies. If the Laffer curve is studied in the basics Economy courses, there would be more people asking for flat-tax and for the reduction of taxes.

http://www.gmu.edu/jbc/fest/files/Monissen.htm
http://www.investopedia.com/terms/l/laffercurve.asp