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TSCF in favor of Flat Tax

Friday, 11 September 2009

Too often, governments and bureaucrats have played God with citizens’ money, creating fiscal ‘niches’, ‘exemptions’, ‘duties’, ‘special taxes’ or even ‘incentives’ supposed to influence the taxpayers’ behaviors.

This, however, is not the normal purpose of taxation. The normal purpose of taxation is not to manipulate the citizens. It is simply to collect the resources necessary to the working of the public service.

In addition, such measures are based on behavioral assumptions that have no scientifically demonstrated basis. And in most cases, the anticipations of lawmakers and officials about behavior eventually fail, due to the complexity of the legislation and the unexpected reactions of the taxpayers.

TSCF supports a radical simplification of the tax systems based on the Flat Tax concept.

A simple, direct contribution with a single rate for all is the most transparent, understandable, and fair taxation system. It would bring many benefits to citizens and public service as well, in particular by cutting on administration costs. A democratically acceptable taxation should be based on the Flat Tax system.

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