What does real fundamental tax reform look like? Ask Slovakia. In 2004 the Slovak Republic launched the kind of truly radical tax reforms that are unthinkable in the current political climate in the U.S. In one sweeping bill Slovak policymakers collapsed five income tax brackets into one, eliminated virtually all exemptions and tax deductions, repealed several forms of double taxation (transfer taxes, donation taxes and inheritance taxes), and set their corporate tax rate equal to their flat individual income tax rate. That’s a shocking political accomplishment that should serve as a beacon of hope for tax policymakers everywhere. Marek Jakoby, Advisor to the State Secretary Ministry of Finance of the Slovak Republic, spoke this week to our 2005 European International Tax Delegation in Prague, Czech Republic. Just four slides from his talk below tell an incredible tax reform story (View the full presentation here).
