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September 14, 2005

Death of the Flat Tax?

Around the world, conservatives have been excited at the idea of selling the "flat tax" -- the same tax rate for all people -- country by country.

So they were understandably excited when the presumptive winner-to-be of the coming German election, the Christian Democratic Party, brough onboard a foremost advocate of the concept as the candidate for finance minister.

But then a funny thing happened. The Christian Democrats began plummeting in the polls. And if advocating a flat tax costs the Christian Democrats the majority they were expecting, some are saying this could kill the concept:

"The flat-tax concept has been discussed seriously by more governments in the past year than it ever has before -- but a lot of it will depend on what happens in Germany this weekend," Stuart Adam, a senior research economist with the Institute for Fiscal Studies, said in an interview yesterday. "A negative vote will probably prevent any other wealthy nation from bringing up the idea any time in the foreseeable future."
Since the Bushies want to promote variations of the idea in their push for tax reform, one wonders if a Christian Democratic loss will destroy the confidence of some GOPers in Congress?

Posted by Nathan at September 14, 2005 08:08 PM