The Curse of the Heritage Foundation
Now take this from the Heritage Foundation in 2005, also written by its Senior Fellow Daniel Mitchell (pictured):
"In a remarkable development, former communist nations are lead ing a global tax reform revolution. Estonia was the first to adopt a flat tax, implementing a 26 percent rate in 1994, just a few years after the collapse of the Soviet Union. The other two Baltic republics of the former Soviet Union enacted flat taxes in the mid-1990s, with Latvia choosing a 25 percent rate and Lithuania picking 33 percent."
Now let's take a look at today's FT:
"While business headlines in the rest of the world speak of clearing skies and rays of sunshine, the Baltic states are still in the midst of a howling economic gale. Despite the region’s small size, the intensifying crisis in the Baltics cannot be treated as a freakish local squall of little concern to outsiders. Bank failures or plunging currencies in the three Baltic nations – Latvia, Lithuania and Estonia – could threaten the fragile prospect of recovery in the rest of Europe. These countries also sit on one of the world’s most sensitive political fault-lines. They are the European Union’s frontier states, bordering Russia."
Please, Mr. Mitchell - stop!
Latvia seems to have gained some better sense recently on the flat tax question. Read more about flat taxes here.