Nothing makes Opinion Journal crazier than The Flat Tax (Crazy Jesus Lady is a close second.) John Fund writes:
After being mired in stagnation for years, in 2001 Russia implemented a flat tax of 13% for individuals, along with a 15% rate for most business income. The economy grew 7.3% last year, thanks in part to underground activity going legitimate, more than doubling revenues from income taxes.
Luckily for John Fund, not a lot of people follow the Russian economy that closely. Sadly for John Fund, Google does:
Economic growth in Russia is estimated to have been around 6-7 per cent in 2000. […] The high price of commodities on the global market and the devaluation of the rouble after the 1998 crisis have particularly supported strong economic growth in Russia. Export has increased as a result of devaluation. Likewise, the price of imported goods has increased. For this reason, industries to replace imports have been developed in several sectors.
The traitorous French add (PDF🙂
The positive effects of the 1998 devaluation of the rouble (domestic output partially replaced imports)
and the surge in oil prices since 1999, accompanied by the steady rise in export volumes, are widely acknowledged
as the drivers of Russia’s economic turnaround after the 1988 crisis.
Let’s make this a slam dunk, ok?
The economy rebounded in 1999 and 2000, buoyed by the competitive boost from the weak ruble and a surging trade surplus fueled by rising world oil prices.
Speaking of slam dunks, we’ll let the CIA wrap this one up:
Russia ended 2004 with its sixth straight year of growth, averaging 6.5% annually since the financial crisis of 1998. […] Economic growth slowed down in the second half of 2004 and the Russian government forecasts growth of only 4.5% to 6.2% for 2005. Oil, natural gas, metals, and timber account for more than 80% of exports, leaving the country vulnerable to swings in world prices.
John Fund also throws in:
Greece is likely to introduce a 25% single rate for both corporate and personal income next month.
Given that the US pretty much has an effective federal tax rate of 25%, John should be pretty happy. [Ooh, a Sadly, No! classic.]