Best Tax System in the World?

Is the Estonian flat tax system ”the best tax system in the world”, as claimed by Prime Minister Andrus Ansip when he hosted the visiting Prime Minister of Finland Matti Vanhanen a couple of days ago.

Ansip even thought that it would be a good idea to have the system introduced in Finland, and although Vanhanen did not reject the idea outright, it’s obviously not imminent.

But whether it is the best system in the world or not, there is no doubt that the model once introduced by Mart Laar in Estonia is gaining ground very fast.

The impressive growth record of Estonia, and its attractiveness for investments, is certainly a contributing factor to this. Success invites imitation.

The idea was somewhat prematurely injected in the German election campaign. Although it did electrify the CDU campaign for a while, it eventually backfired as one wasn’t really prepared for the debate. It did not score that well in the Polish election campaign either, although it was not a major issue.

Nevertheless, there is no mistaking the idea gathering ground around Europe.

It will be one of the hottest topic of debate, primarily in Northwestern Europe, in the next few years. And it might well be one of the most significant chances of major success of these countries in the decades ahead.
Helsingin Sanomat – International Edition – Foreign

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