As a danish citizen living in Estonia I was in the beginning very impressed
by the simple Estonian tax system. In Denmark we are competing with Sweeden
to have the highest tax level in EU. A 22% flat tax rate is impressing.
But a not so well know part of the story is a 33% flat additional
“social tax”. In my mind the resulting flat 55% tax level (higher than both
Denmark and Sweeden!?) is very high tax level for low skilled workers etc.
Are the rich people (owning the factories) and driving BMW also
paying 55% in total taxes (of total income) -or is it only the busdriver
and the school-teacher. I have very deep respect for the amazing results
regarding total growth in the Estonian economy. But I think you have a
need to implement some elements from the Scandinavian wellfare model.
In my mind economical growth does not automatically result in average
population having higher living standards.

Regards,

Kristian

Alot of success can be attributed to the culture and hard work of Estonians.

As to communist past. In Europe with exception of Scandinavian countries most people see Estonia as post USSR, East European country. When will government start promoting Estonia? A few pages in fortune magazine, etc.

Perhaps Dr Ariel Cohen from Heritage Foundation could post a short comment here?

Regards,

Igavald.