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How to collect taxes - varnamvarnam
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How to collect taxes

A national pastime in Russia used to be tax evasion. So the Govt. came up with a plan to collect taxes — a 13% flat tax system. Due to this

bq. “Russia Misuses Benefits From Its Flat-Tax System:”:http://www.newsmax.com/archives/articles/2002/4/15/170208.shtml As the Russian media reported, in addition to one low rate, Russia’s flat tax is much more favorable to savings and investments. In this country, income is taxed once when Americans earn it and a second time when Americans invest it. Russia’s flat tax does not double-tax corporate income or impose a capital gains tax on stocks, bonds and home sales. Also, with few exceptions, there is no double tax on bank deposit interest.

bq. As a result of this system, which established one of the lowest tax rates in Europe, Russia’s economy grew by more than 5 percent last year while most other nations were hit by recessions. In establishing a flat tax, Russia followed Hong Kong and Bermuda and such former Soviet republics as Latvia, Lithuania and Estonia, whose populations also enjoyed rapid growth in part because of their tax system.

I read the editorial in Wall Street Journal which advocates the same for United States. Is this something which can be done in India ?


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