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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 Economic growth. 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. TABLE 3. 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



Dominican Respublika7373-0.1




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 Expensively

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. Henry George 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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