Ortega proposes a flat tax

[NewsWhore]

Economist, negotiator and ambassador to Colombia Julio Ortega Tous has called for a simplification of the local tax structure and suggested a flat 10% tax on all imports, a 10% tax on incomes and a 10% VAT tax on everything, with no exclusions. This follows a similar proposal by US economist Victor Canto, who was one of late former President Ronald Reagan's economic advisors, and years ago by Frederic Emam Zade, today director of the Funglode think tank in Santo Domingo. Ortega Tous cited what is happening in the tobacco sector, where cigarette manufacturers are halting local production and importing product for the local market. "What is worse" according to Ortega, "is the risk of contraband and counterfeiting." Ortega used Ireland, a country that was one of the poorest in Europe 17 years ago, as his example. By simplifying the fiscal structure, Ireland has become a magnet for investors and is now one of the richest countries in Europe. In the past, income tax in Ireland could be as high as 76%, but today it is just 15%. Ortega pointed out that he was not looking to reduce the government's income levels but to simplify the system in order to guarantee current levels or even an increase of income. According to Ortega, the IMF does not see things the same way, and has not realized what has happened in the tobacco and alcoholic beverage sectors where the highest taxes have produced a decrease in collections.

More... (http://www.dr1.com/index.html#5)