“The Russian [tax] reforms began in earnest at the start of 2001, when Mr. Putin introduced a 13% flat tax on individual income, replacing a convoluted system that had a marginal rate of 30%...
“Tax revenues immediately began heading north, as citizens decided it was easier to pay taxes than go to the trouble of avoiding them. This was a classic Laffer Curve result—an enlarged tax base and a surge in tax revenues.”
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