Mexico And The Flat Tax: Perfect Together?
From "Tax reform: Fox is pushing the case" (International Business, July 24), Mexico's tax-collection system appears to be in shambles, burdened by corruption, rampant avoidance, and a large underground economy.
A flat tax at a low rate would be easy to understand, easy to administer, fair to all, invite a minimum of avoidance, vastly reduce legal costs for taxpayers, eliminate almost all corruption associated with tax collection, and provide a Reaganesque spurt to economic growth.
If sold correctly, this tax could result in a higher level of compliance and could be at such a low rate that it would almost instantly spur economic growth, which will then bring in increased revenue. It could be the stepping stone of a new PAN dynasty.