Abstract

The key macroeconomic characteristics of the Flat Tax according to the Hall - Rabushka theory are outlined, with emphasis on the similarities and differences with the "Supply – Side Economics". The main objective is to illustrate the application of this type of taxes in the Eastern European practices, the deviations from the original proposal and the differences among them. The Bulgarian flat tax variation (2008-2009) is analyzed accordingly. Some general conclusions and proposals are made, based on this concept.