An interview with Alvin Rabushka

Alvin Rabushka is often described as the father of the flat tax. His work inspired the adoption of flat-tax systems in many of the former communist countries of central and eastern Europe. This helped bring about a dramatic economic transformation by improving incentives for work and enterprise, reducing compliance costs and increasing tax revenues.

In this interview, Rabushka argues that a flat tax is a fair and equal method of taxation, which can radically improve economic growth.


Comments (2)
Taxation, that is the coercive appropriation of income/capital is inherently unfair. It does not relate to the benefit the payer receives so distorts incentives. When something is unfair, economic efficiency suffers. Taxation therefore carries high deadweight losses. The services we share should only be funded from the value we create together. That value crystallizing as land rent. Paying land rent as State revenue is non-coercive, and directly relates to the benefit the payer receives. A user fee in other words, not a "tax". Paying for State services does not get any simpler, flatter or more efficient when we have true fairness at the heart of "tax" policy.

@Benji If paying land rent as State revenue is non-coercive, could you explain what would happen to landowners who disagreed with such government impositions and refused to pay?

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As in all IEA publications, the views expressed in this blog are those of the authors and not those of the Institute (which has no corporate view), its managing trustees, Academic Advisory Council or senior staff.

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