Flat Tax System Imposed On Iraq

Washington Post ^ | 11/02/03 | Dana Milbank and Walter Pincus

[Pokey78]

U.S. Administrator Orders 15% Rate

The flat tax, long a dream of economic conservatives, is finally getting its day -- not in the United States, but in Iraq.

It took L. Paul Bremer, the U.S. administrator in Baghdad, no more than a stroke of the pen Sept. 15 to accomplish what eluded the likes of publisher Steve Forbes, former representative Jack Kemp (R-N.Y.), former senator Phil Gramm (R-Tex.) and former representative Richard K. Armey (R-Tex.) over the course of a decade and two presidential campaigns.

"The highest individual and corporate income tax rates for 2004 and subsequent years shall not exceed 15 percent," Bremer wrote in Coalition Provisional Authority Order Number 37, "Tax Strategy for 2003," issued last month.

Voila, Iraq has a flat tax, and the 15 percent rate is even lower than Forbes (17 percent) and Gramm (16 percent) favored for the United States. And, unless a future Iraqi government rescinds it, the flat tax will remain long after the Americans have left.

[Pokey78]

Some DemocRats will think the flat tax is more of a threat to Iraqis than jihadists are.

[GO65]

The flat tax, long a dream of economic conservatives, is finally getting its day -- not in the United States, but in Iraq.

I'm an economic conservative and the flat tax isn't my dream, the national sales tax is my dream. I'm repulsed at the notion that the government gets a cut of my income before I do.

[ServesURight]

Totally agree. The original income tax started out as a flat tax but has become a quagmire of loopholes, credits, deductions, and exemptions.

Plus a National Sales Tax would tax the underground economy.

[RS]

Just where does this say a flat tax ?

It says the HIGHEST rate will be 15% - not the lowest or any in between....

[Chris Tucker]

Who would collect the sales taxes and furnish them to the fedgov? Would there be 50 different sales tax checks that states would hand over? The fiscal year, for starters, would have to be changed to Feb 1 - Jan 31. Plus you're paying a federal sales tax on top of a state sales tax.

Rather have a flat income tax. Russia's tax is 13% and you don't hear them complaining.

[Yardstick]

Judging from the tone of this piece, it seems that its writers are upset that Iraq is getting a flat tax.

[upchuck]

The only tax that's a fair^ tax.

[GO65]

Who would collect the sales taxes and furnish them to the fedgov? Would there be 50 different sales tax checks that states would hand over?

Proposals for how the NST would work are well defined at sites such as CATO and fairtax.org. Essentially the states would collect the tax and forward it to the feds. Businesses would be allowed to keep a percentage of what they collected. I'd recommend you check out these sites for starters.

Rather have a flat income tax. Russia's tax is 13% and you don't hear them complaining.

Apparently those in Russia who complain are arrested these days.

[GO65]

I've often wondered why politicians won't try and run on a fair tax platform. Other than Lugar in 1996, I can't think of another major politician who's come out in favor of the NST. If Bush would embrace it I'd argue you'd see a massive outpouring of support.

[taildragger]

Excellent,

Now if it has no Cap Gains, Dividend Tax and No Estate Taxes, let this economy Rock and Roll!

Anything to get the 9 Dwarfs panties in a wad and BrunHilliaries !

[baltodog]

I could never understand why everyone wants to tax just flat things....
What about round, or irregular, or sherical?

[KC_Conspirator]

I have seen worse articles from Milbank. This one is only slightly critical of the flat tax.

[#3Fan]

Any tax good enough for God is good enough for me. God had a 10% flat tax in the theocracy days of Israel.

[WinOne4TheGipper]

Flat Tax System Imposed On Iraq
Isthat their headline?

[Monty22]

"Plus a National Sales Tax would tax the underground economy."

Except for the underground black market of untaxed goods.

[Pokey78]

Yes.

[RippleFire]

bump

[Jabba the Nutt]

"Flat Tax System Imposed On Iraq"

Okay, the first thing is, I'd like to know, when the last time the Washington Post said a tax was imposed on Americans. I guess only Americans can "impose" taxes on foreigners. I wouldn't mind, if they were consistent.

"The flat tax, long a dream of economic conservatives, is finally getting its day -- not in the United States, but in Iraq."

If these reporters and editors were informed as a salesman in central Michigan (moi), they'd know that Russian has had a flat tax for a couple years at least and Putin saw his tax revenues skyrocket. So, it's not a first time.

Third, as a economic conservative, the dream is NOT a flat tax. The dream is NO tax. Post, kapeesh?

[WinOne4TheGipper]

Copy editors usually write the headers, but one has to wonder how such an obviously biased headline made it into the paper.

[cdrw]

Probably because most of the taxes are paid by very few people. Any fair tax scheme would necessarily result in an increase in taxes for the majority of people and the mind numbing screams of 'tax breaks for the rich'.