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Low tax and excessively laissez faire? The news reporting about Russia is so devoid of information that few Americans know about this. Russia did a couple of years ago what Ronald Reagan couldn t pull off; it has introduced a flat personal income tax. The single rate for earned income 13%. The corporate income tax rate is 24%, and it is widely considered (even by the Communists) that this is still too high. Dividend income is taxed at 6%. Social taxes are regressive, starting at about 35% but falling to less than 1% for incomes over a few thousand dollars a month. The value added tax is high at 20%, and the Putin administration s next tax bill will propose halving that to 10%. Laissez faire? The state has practically withdrawn from direct involvement in the economy, and with more than 90% of GNP produced in the private sector (including GNP which is supposed to be produced in the shadow economy), Russia is (by that measure) the most capitalist country in Europe. No wonder the old socialists in Brussels are worried about Russia. In Russian universities, obscure Austrian economists dominate the economics courses. The cover story of one issue of Kommersant weekly (Russia s Wall Street Journal) this past January marked the 49th anniversary of Schumpeter' s death (if I remember correctly). [Joseph Schumperter died on January 8, 1950, so it must have been his 52nd anniversary, if I remember my arithmetic. I was surprised that he has such an influence in Russia; he represents dog-eat-dog, law of the jungle economics, which I judge a sure route to social disaster.RH.].