A wave of flat-tax legislation swept across Central and Eastern Europe after the fall of communism, as more than a dozen countries across the region adopted single income-tax ratesâ??to the delight of free marketers who have long championed flat taxes as an economic stimulant.
Now, the wave is receding. Last year, even as Republican presidential candidates Newt Gingrich and Rick Perry were stumping for flat-tax schemes in the U.S., the Czech Republic and Slovakia repealed theirs, replacing them with progressive tax schemes in which richer taxpayers pay higher rates.
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