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The national product (GNP) in these countries decreased, and only to one country with
Heavy taxes, namely Morocco, was possible to achieve any
In five developing countries: Hong Kong, Indonesia, Mauritius, Singapore and
Malaysia, - limiting tax rates were much more low, and there
Fast economic growth was observed. Real GNP per capita in
These countries within 80th years of dews with mid-annual rate in 4.2 %.
High tax rates interfere with growth of incomes. To the governments,
Which care of prosperity of the countries, it is necessary to keep the tax
Rates, especially limiting, on a low level.
Limiting rates of the taxation and economic growth Limiting
The taxation rate, in %it rate of increase of gross national product per capita
In 1980 - 1990
The countries with heavy taxes
Average rate of growth-0.7
The countries with low taxes
Average rate it4.2
* -- It is applied to the income less than 10 thousand dollars USA.
Source: the Data under limiting tax rates is resulted on: Price
Waterhouse, Individual Tax Rates, 1984 and 1989. The data on rates of increase
Gross national products are taken from: World Bank, World Development Report, 1992.
FOREIGN TRADE FREEDOM: the country wins, selling the goods, which
Makes cheaply and buying on this money the goods which it to make
The freedom of commerce consists in granting to people of possibility to sell and
To buy how they of it want... Protectionist tariffs - same
Force application, as well as establishment of blockade by means of armies, and that their purpose
- to prevent trade. A difference that by means of military blockade
The countries prevent to trade to the enemies, and by means of the protectionist
Tariffs - to own citizens.
Protectionism or free trade, 1886
1980), p. 47
(reprinted edition, Henry George, New York: Robert Schalkenbach Foundation, Protection, 1886 or Free Trade
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