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100 percent reserves in another's currency and the consent to exchange the internal
Currency on foreign on a fixed rate adheres the internal
Currency to the foreign. Hence, rates of inflation in the state having
Currency management, about the same, as in the country, the bond and currency
Which it uses as the reserves.
At all variety of the means providing monetary and price
Stability, all recognise its exclusive importance as source
Economic prosperity. Without monetary stability potential benefits
From investments and other operations providing the long-term
Obligations, will be lost, and the country people cannot completely
To realise the economic potential.
LOW TAXES: the more means remains at the disposal of people, the
More they make
Taxes are impregnated then everyone who works. Result of the excessive
Taxes the staying idle factories sold for shortages of a farm and are
Crowds of the hungry people wandering on streets in vain searches of job.
Speech in Pittsburgh on October, 19th, 1932
High tax rates, taking away from people a considerable part of their income,
Deprive their thereby of stimulus to job and productive use
Resources. The limiting tax rate - a gain share is especially important
The income which leaves in a type of tax.
When the limiting tax rate grows with income level, a share
Additional earnings which is permitted to leave to itself,
It is reduced.
High limiting tax rates reduce a national product and
The national income for three reasons.
First; they beat off desire to work with full return and reduce
Labour productivity. Increase of the limiting tax rate to 55 or
60 % that leaves to people as a result less half that they have earned. That,
Who has no possibility to leave to itself the most part earned,
Loses aspiration much to earn. Some (for example, the one who has
The working spouse) will simply leave work, others will work
Smaller quantity of hours. Someone will decide to take longer vacation,
To refuse overtime works, earlier to retire; the unemployed
Becomes more legible at receipt on job, and the businessman will be
It is compelled to stop realisation perspective, but the risky project. In
Some cases high tax rates even force most
Efficient citizens to leave in the countries with low taxes. These changes
Reduce the offer of work and call in the country manufacture decrease.
High tax rates generate also inefficient use of work.
Some people will change employment incomes from which are taxed,
On less productive, but not taxable kinds of activity
(For example, working at home on itself). Losses become result and
Secondly, high tax rates reduce as scales, and
Efficiency of capital investments. They frighten off foreign investors, and
Investment projects abroad, where force to search for the internal
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