Part 1 - AL-Tax

Chapter 1111.7 ConclusionMost of the Asian countries selected for inclusion in this study are average to betterthan average competitors in the area of public finance. The Tax Misery Index showsthem to be above average competitors, in the sense that nine of the 12 Asian countriesincluded in the study were ranked above average in terms of tax happiness(or below average in terms of tax misery). The Index of Economic Freedom showsthat many of the Asian countries included in the study are in the top half, in termsof lightness of fiscal burden, which might lead one to conclude that they are, onaverage, stronger competitors than the more developed market economies.Of course, there are many other factors that investors and corporations need toconsider before deciding whether to invest in a transition economy. A strong ruleof law is very important, which includes strong protection of property rights andenforcement of contracts. Corruption and the extent of the underground economy,monetary policy, trade policy, and the level of education of the workforce are alsoimportant factors.ReferencesAnderson, J. (2005). The Tax World Gets Flat and Happy. Forbes Global, 23 May, online edition.Blum, W.J. and Kalven, H. Jr (1953). The Uneasy Case for Progressive Taxation. University ofChicago Press, Chicago.deJouvenel, B. (1952). The Ethics of Redistribution. Cambridge University Press, Cambridge.Flannery, R. (2005). Time Bomb. Forbes Global, 23 May, online edition.Hall, R.E. and Rabushka, A. (1985). The Flat Tax. Hoover Institution Press, Stanford, CA.Index of Economic Freedom (2006). The Heritage Foundation, Washington, DC and the Wall StreetJournal, New York. Also available at www.heritage.org.Marx, K. and Engels, F. (1848). Manifesto of the Communist Party.McCaffery, E. J. (2002). Fair Not Flat: How To Make the Tax System Better and Simpler. Universityof Chicago Press, Chicago.McGee, R.W. (1998a). Is the Ability to Pay Principle Ethically Bankrupt? Journal of Accounting,Ethics and Public Policy, 1(3):503–511.McGee, R.W. (1998b). Are Discriminatory Tax Rates Ethically Justifiable? Journal of Accounting,Ethics and Public Policy, 1(4):527–534.McGee, R.W. (2004). The Philosophy of Taxation and Public Finance. Kluwer Academic, Boston.Tax Misery and Reform Index (2005). Forbes Global, 23 May, online edition.287