Of course they want to cite HK as an example - that's a classic example of "Rich People Don't Pay a Lot" tax system.
There is a flat rate for income tax, I think it was 17% (when I was still there) of your earnings without any deductions. One can compare if one would pay less tax with this flat rate, or use the brackets way (applicable with deductions). Usually you need to have quite higher income to make that flat rate favourable to you. Although for many rich people - it's still an attractive rate.
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ninetydegrees
no subject
on 2009-02-06 10:03 am (UTC)There is a flat rate for income tax, I think it was 17% (when I was still there) of your earnings without any deductions. One can compare if one would pay less tax with this flat rate, or use the brackets way (applicable with deductions). Usually you need to have quite higher income to make that flat rate favourable to you. Although for many rich people - it's still an attractive rate.