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“A flat tax is for a flat Earth”

In: Collected Works of Domenico Mario Nuti, Volume II

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  • Domenico Mario Nuti

    (University of Rome)

Abstract

This was my answer to Grzegorz Kolodko, Poland’s Minister of Finance and First Deputy Premier for the Economy (1994–1997 and 2002–2003), when in the mid-90s he asked me—his adviser sponsored by the European Commission—for an opinion on the feasibility and desirability of introducing a flat tax. I recommended instead a reduction of indirect taxation and the introduction of a tax on capital gains. To his credit Grzegorz listened to me on the flat tax, he reduced the number and level of marginal tax rates but at the same time he raised public expenditure on investment and on re-distribution, introduced an industrial policy that did not seek to pick winners but promoted high value added and export activities, and his package worked well.

Suggested Citation

  • Domenico Mario Nuti, 2023. "“A flat tax is for a flat Earth”," Studies in Economic Transition, in: Saul Estrin & Milica Uvalic (ed.), Collected Works of Domenico Mario Nuti, Volume II, chapter 12, pages 211-215, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-3-031-23167-4_12
    DOI: 10.1007/978-3-031-23167-4_12
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