Flat tax news

Via Cato, the Czech Republic is introducing the flat tax system. The Prague Monitorreports:

The reform package wil gradually lower the corporate tax rate from today's 24 percent to 21 percent next year, 20 percent in 2009 and 19 percent in 2010. The existing progressive taxation of personal income at 12 to 32 percent will be replaced by a flat tax of 15 percent in 2008 and 12.5% in 2009.

The personal income tax will be calculated from super-gross income, including social and health insurance contributions paid by the employee and the employer. This means effective taxation will be 23.1 percent of gross income in 2008 and 19.4 percent in 2009.

Simple, straightforward, easy to calculate, hard to find loopholes in, this must be the most rational taxation system.