Uploaded February 2022 | Updated September 2026, 3 weeks ago

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In the 1980s, simplifying America’s tax code provided better incentives to work, save, and invest. Wanting to go even further, Alvin Rabushka and Bob Hall proposed a flat tax. Though it was not adopted in America, countries that have implemented the flat tax have seen less tax avoidance and more tax revenue.

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Additional resources:

Read Alvin Rabushka and Robert Hall’s book The Flat Tax free. Available here: alvinrabushka.com/books.

Watch “What We Learned About 70% Tax Rates 50 Years Ago” on PolicyEd. Available here: policyed.org/friedmanfundamentals/what-we-learned-about-70-tax-rates-50-years-ago/video.

Watch “Why Tax Rates Matter More than Taxes” on PolicyEd. Available here:
policyed.org/intellections/why-tax-rate-matters/video.

Watch “John Cogan on the Negative Effects of High Taxes” on PolicyEd. Available here: policyed.org/policy-briefs/john-cogan-negative-effects-high-taxes/video.

Watch “John Cochrane on Why a Complicated Tax Code Leads to Negative Outcomes” on PolicyEd. Available here: policyed.org/policy-briefs/john-cochrane-why-complicated-tax-code-leads-negative-outcomes/video.

Visit policyed.org to learn more.

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