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{{Infobox Settlement
{{For|the term related to tax incidence regarding flat progressivity|Proportional tax}}
|official_name = Georgetown, Texas
{{Public finance}}
|settlement_type = [[City]]
A '''flat tax''' (short for flat rate tax) is a [[tax]] system with a constant tax rate.<ref>James, Simon (1998) ''A Dictionary of Taxation'', Edgar Elgar Publishing Limited: Northampton, MA</ref> Usually the term ''flat tax'' would refer to household income (and sometimes [[corporation|corporate]] [[profit]]s) being taxed at one [[marginal rate]].
|nickname = Red Poppy Capital of Texas, Retirement Capital of Texas, Gtown
|motto = "Sincerely Yours"


<!-- Images -->
Flat taxes, implemented as well as proposed, usually [[tax exemption|exempt]] household income below a statutorily determined level that is a function of the type and size of the [[household]]. As a result, so-called flat taxes are often not a true [[proportional tax]], as [[taxable income]] may not equal total income. Nomenclature regarding flat taxes has become increasingly lax, in that taxes that are described as flat sometimes have little to differentiate them from other tax regimes, e.g. [[progressive tax]]es.
|image_skyline =
|imagesize =
|image_caption =
|image_flag =
|image_logo = Image:City Logo.jpg


<!-- Maps -->
==Tax effects==
|image_map = TXMap-doton-Georgetown.PNG
|mapsize = 250px
|map_caption = Location of Georgetown, Texas
|image_map1 =
|mapsize1 =
|map_caption1 =


<!-- Location -->
===Distribution===
|subdivision_type = [[List of countries|Country]]
Tax distribution is a hotly debated aspect of flat taxes. The relative fairness hinges crucially on what tax deductions are abolished when a flat tax is introduced, and who profits the most from those deductions.
|subdivision_name = [[United States]]
|subdivision_type1 = [[Political divisions of the United States|State]]
|subdivision_name1 = [[Texas]]
|subdivision_type2 = [[List of counties in Texas|County]]
|subdivision_name2 = [[Williamson County, Texas|Williamson]]


<!-- Government -->
Proponents of the flat tax claim it is fairer than stepped [[marginal tax rates]], since everybody pays the same proportion. Opponents point out first that it might not make sense for everyone to pay the same proportion when some get advantages of prosperity. Also, they note that for the state to raise the same amount of money under a flat rate tax (to the first order, that is, assuming people earn the same incomes as before) requires that the rich pay less and the poor pay more than they would under a more progressive tax system. Proponents respond to this argument by saying that second-order effects would compensate; a flat tax would remove economic disincentives and encourage economic growth, thus leading to higher incomes and more tax revenues. So taxpayers across income ranges could be paying at the same or lower rate than their old system. Economic models usually predict that flat tax will increase both output and inequality.<ref>http://www.iser.essex.ac.uk/pubs/workpaps/pdf/2008-06.pdf </ref><ref>http://mpra.ub.uni-muenchen.de/7304/ </ref><ref>http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V85-3Y9RKX5-8&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_version=1&_urlVersion=0&_userid=10&md5=2b6593e1669a80a761d9eab81765a673 </ref>
|government_footnotes =
|government_type = Mayor/Council
|leader_title = Mayor
|leader_name = George Garver
|leader_title1 = City Manager
|leader_name1 = Paul Brandenburg
|established_title =
|established_date =


<!-- Area -->
Proponents claim that since everybody pays the same rate, it treats everyone equally and thus is fair to everyone. Opponents of the flat tax, on the other hand, claim that since the [[marginalism|marginal value]] of income declines with the amount of income (the last 100 of income of a family living near poverty being considerably more valuable than the last 100 of income of a millionaire), taxing that last 100 of income the same amount despite vast differences in the marginal value of money is unfair. Many flat-tax proponents actually concede this premise since most proposals are not truly totally flat but have a threshold below which income is not taxed at all.{{Fact|date=May 2007}} Therefore, with the exception of flat-tax proponents who argue for no deductions and taxation of all income at one flat rate, both proponents and opponents agree in principle if not in degree with the basic premise of this concept.
|unit_pref = Imperial
|area_footnotes =
|area_magnitude =
|area_total_km2 = 64.6
|area_land_km2 = 59.1
|area_water_km2 = 5.4
|area_total_sq_mi = 24.9
|area_land_sq_mi = 22.8
|area_water_sq_mi = 2.1


<!-- Population -->
However, the sizable exemptions provided under most flat tax proposals go far in restoring effective progressivity. As income for an individual increases, the exempt income becomes an ever smaller percentage of total income.
|population_as_of = [[United States Census, 2008 estimates|2008]]
|population_footnotes =
|population_total = 48202
|population_density_km2 =
|population_density_sq_mi = 2114
|Demonym = Georgetonian


<!-- General information -->
The issue of removing deductions, exemptions and special treatments is also relevant to the tax burden, if those special treatments currently benefit the better off. As an example, the tax debate in the UK has recently (2007) focused on the fact that hedge fund managers, some with multi-million pound incomes, "pay less tax than a cleaning lady"<ref>"SVG chairman breaks tax taboo", Financial Times, London, 3rd June 2007 ([http://www.ft.com/cms/s/d1ce2de0-1202-11dc-b963-000b5df10621,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2Fd1ce2de0-1202-11dc-b963-000b5df10621.html&_i_referer=http%3A%2F%2Fwww.google.co.uk%2Fsearch%3Fhl%3Den])</ref> (actually a lower tax ''rate'' rather than less tax), because the hedge fund manager's "income" qualifies as capital gains, taxable at 10%, rather than the cleaner's employment income taxable at 33% (22% income tax plus 11% social security charge). A flat tax that taxed both at the same rate is argued to be fairer than the current, supposedly progressive, system.
|timezone = [[North American Central Time Zone|Central (CST)]]
|utc_offset = -6
|timezone_DST = CDT
|utc_offset_DST = -5
|elevation_footnotes =
|elevation_m = 230
|elevation_ft = 755
|latd = 30 |latm = 39 |lats = 4 |latNS = N
|longd = 97 |longm = 40 |longs = 53 |longEW = W


<!-- Area/postal codes & others -->
We must also consider fairness in relation to the broader concept of justice. Proponents argue that a flat tax would:
|postal_code_type = [[ZIP code]]s
# by its greater simplicity, reduce taxes for each person, rich and poor; and
|postal_code = 78626, 78627, 78628 & 78633
# by stimulating economic growth, produce more government revenue, directable to programs that benefit the poor.
|area_code = [[Area code 512|512]]
|blank_name = [[Federal Information Processing Standard|FIPS code]]
|blank_info = 48-29336{{GR|2}}
|blank1_name = [[Geographic Names Information System|GNIS]] feature ID
|blank1_info = 1357960{{GR|3}}
|website = www.georgetown.org
|footnotes =
}}
[[Image:DOWNTOWN GTOWN.jpg|thumb|left|Downtown Georgetown is considered to be the jewel of the city and is also known as one of the best preserved historic downtowns in the state.]]'''Georgetown''' is a suburban community in [[Williamson County, Texas|Williamson County]], [[Texas]], [[United States]]. The population was 28,339 at the 2000 census but recent 2008 estimates show the city to have a population of just under 50,000. It is the [[county seat]] of [[Williamson County, Texas|Williamson County]].{{GR|6}} [[Southwestern University]] is located in Georgetown, about 1/2 mile east of the historic square. A popular tourist attraction, [[Inner Space Cavern]] is a [[cave]] found on the southside of the city, just off [[Interstate 35]].


==Geography==
Thus, even if a flat-rate taxation is less fair than graduated taxation as a concept, it could produce more social justice.
Georgetown is located at {{coor dms|30|39|4|N|97|40|53|W|city}} (30.651187, -97.681333){{GR|1}}, 26 miles (42 km) north of [[Austin, Texas|Austin's]] [[Central Business District]].


According to the [[United States Census Bureau]], the city has a total area of 24.9&nbsp;[[square mile]]s (64.6&nbsp;[[km²]]), of which, 22.8&nbsp;square miles (59.1&nbsp;km²) of it is land and 2.1&nbsp;square miles (5.4&nbsp;km²) of it (8.42%) is water.
===Administration and enforcement===
A flat tax taxes all income once at its source. Hall and Rabushka (1995) includes a proposed amendment to the US Revenue Code implementing the variant of the flat tax they advocate.<ref>[http://www.hoover.org/publications/books/fulltext/flattax/appendix.html Hoover Institution - Books - The Flat Tax<!-- Bot generated title -->]</ref> This amendment, only a few pages long, would replace hundreds of pages of statutory language (although it is important to note that much statutory language in taxation statutes is ''not'' directed at specifying graduated tax rates; see ''Conflating concepts'' in ''Arguments against'' below). As it now stands, the USA Revenue Code is over 9 million words long and contains many loopholes, deductions, and exemptions which, advocates of flat taxes claim, render the collection of taxes and the enforcement of tax law complicated and inefficient. It is further argued that current tax law retards economic growth by distorting economic incentives, and by allowing, even encouraging, tax avoidance. With a flat tax, there are fewer incentives to create tax shelters and to engage in other forms of tax avoidance.


The city is located on the northeastern edge of [[Texas Hill Country]], providing [[karst topography]] in western parts with more [[arable land]] to the east. The [[San Gabriel River]] runs through the city providing miles of hike and bike trails, several parks and recreation for both residents and visitors.
Under a pure flat tax without deductions, companies could simply, every period, make a single payment to the government covering the flat tax liabilities of their employees and the taxes owed on their business income.<ref>[http://www.economist.com/printedition/displayStory.cfm?Story_ID=3861190 Simpler taxes | The flat-tax revolution | Economist.com<!-- Bot generated title -->]</ref> For example, suppose that in a given year, ACME earns a profit of 3 million, pays 2 million in salaries, and spends an added 1 million on other expenses the IRS deems to be taxable income, such as stock options, bonuses, and certain executive privileges. Given a flat rate of 15%, ACME would then owe the IRS (3M + 2M + 1M) x0.15 = 900,000. This payment would, in one fell swoop, settle the tax liabilities of ACME's employees as well as taxes it owed by being a firm. Most employees throughout the economy would never need to interact with the IRS, as all tax owed on wages, interest, dividends, royalties, etc. would be withheld at the source. The main exceptions would be employees with incomes from personal ventures. The ''Economist'' claims that such a system would reduce the number of entities required to file returns from about 130 million individuals, households, and businesses, as at present, to a mere 8 million businesses and self-employed.
[[Image:N SAN GAB RIV.jpg|thumb|left|Young adults cliff diving off the banks of the San Gabriel River.]]


==Demographics==
This simplicity would remain even if realized capital gains were subject to the flat tax. In that case, the law would require brokers and mutual funds to calculate the realized capital gain on all sales and redemptions. If there were a gain, 15% of the gain would be withheld and sent to the IRS. If there were a loss, the amount would be reported to the IRS, which would offset gains with losses and settle up with taxpayers at the end of the period.
As of the [[census]]{{GR|2}} of 2000, there were 28,340 people, 10,393 households, and 7,711 families residing in the city. The [[population density]] was 1,241.3 people per square mile (479.3/km²). There were 10,902 housing units at an average density of 477.5/sq&nbsp;mi (184.4/km²). The racial makeup of the city was 85.39% [[White (U.S. Census)|White]], 3.39% [[African American (U.S. Census)|African American]], 0.35% [[Native American (U.S. Census)|Native American]], 0.67% [[Asian (U.S. Census)|Asian]], 0.05% [[Pacific Islander (U.S. Census)|Pacific Islander]], 8.31% from [[Race (United States Census)|other races]], and 1.83% from two or more races. [[Hispanic (U.S. Census)|Hispanic]] or [[Latino (U.S. Census)|Latino]] of any race were 18.07% of the population.


There were 10,393 households out of which 31.8% had children under the age of 18 living with them, 61.6% were [[Marriage|married couples]] living together, 9.5% had a female householder with no husband present, and 25.8% were non-families. 21.5% of all households were made up of individuals and 9.3% had someone living alone who was 65 years of age or older. The average household size was 2.52 and the average family size was 2.92.
Under a flat tax, the government's cost of processing tax returns would become much smaller, and the relevant tax bodies could be abolished or massively downsized. The people freed from working in administering taxes will then be employed in jobs that are more productive. If combined with a provision to allow for [[negative income tax|negative taxation]], the flat tax itself can be implemented in an even simpler way. In addition, such a tax reduces the cost of welfare administration significantly.{{Fact|date=May 2007}}


In the city the population was spread out with 23.4% under the age of 18, 11.4% from 18 to 24, 26.3% from 25 to 44, 21.3% from 45 to 64, and 17.7% who were 65 years of age or older. The median age was 37 years. For every 100 females there were 95.0 males. For every 100 females age 18 and over, there were 91.1 males.
It is invariably argued that a flat tax will greatly simplify tax compliance and administration. In fact, simplicity does not so much stem from the structure of tax rates (a progressive rate structure is nothing more than a look-up table filling at most one page) as from the definition of what is subject to tax. Tax simplification - getting rid of all the deductions, exemptions, and special rules added over the years - is an issue wholly separable from that of the rate structure. A nation can vastly simplify its tax code while keeping its rate structure progressive. Similarly, a nation could establish a flat tax rate while retaining inordinately complex rules defining the nature of income (such as the [[imputed interest]] rules in the US).


The median income for a household in the city was $54,098, and the median income for a family was $63,338. Males had a median income of $40,541 versus $27,082 for females. The [[per capita income]] for the city was $24,287. About 4.4% of families and 7.2% of the population were below the [[poverty line]], including 9.3% of those under age 18 and 3.9% of those age 65 or over.
It is possible that a flat tax would not remain simple over time, given the realities of interest group politics. While all flat tax proposals propose to eliminate nearly all deductions and credits, some envision keeping the mortgage interest deduction and possibly some others (note that Hall and Rabushka 1995 do not). {{Fact|date=July 2007}}


== History ==
===Economic efficiency===
Georgetown, the county seat of Williamson County, was founded in 1848 at the fork of the San Gabriel River. The town was named for [[George Washington Glasscock]] who donated the land for the new town. Early pioneers were attracted to the area's abundance of timber and good, clear water, just as the [[Tonkawa]] Indians, who thrived in the area for many years. In addition, the land was inexpensive and extremely fertile.
A common approximation in economics is that the economic distortion or excess burden from a [[tax]] is proportional to the square of the tax rate.<ref>Louis Kaplow. "Accuracy, Complexity, and the Income Tax," ''Journal of Law, Economics, and Organization'' (1998), V14 N1, p.68.[http://jleo.oxfordjournals.org/cgi/reprint/14/1/61.pdf]</ref> A 20 percent tax rate thus causes four times the excess burden or [[deadweight loss]] of a 10 percent tax, since it is twice the rate. Broadly speaking, this means that a low uniform rate on a broad tax base will be more [[economic efficiency|economically efficient]] than a mix of high and low rates on a smaller tax base.


Georgetown remained an agrarian community for most of the 19th and early 20th centuries.
===Revenues===
The establishment of [[Southwestern University]] in 1873 and construction of a railroad in 1878 contributed to the town's growth and importance. A stable economy was based largely on agriculture, mainly cotton. The Chisholm Trail, a cattle trail that led from Texas to the railcenters in Kansas and Missouri crossed through the heart of Georgetown.
Some claim {{Who|date=September 2008}} the flat tax will increase tax revenues, by simplifying the tax code and removing the many loopholes corporations and the rich currently exploit to pay less tax. The Russian Federation is a claimed case in point; the real revenues from its Personal Income Tax rose by 25.2% in the first year after the Federation introduced a flat tax, followed by a 24.6% increase in the second year, and a 15.2% increase in the third year.<ref name="rabushka">[http://www.russianeconomy.org/comments/042604.html The Flat Tax at Work in Russia: Year Three], Alvin Rabushka, Hoover Institution Public Policy Inquiry, www.russianeconomy.org, April 26, 2004</ref> The [[Laffer curve]] predicts such an outcome, but attributes the primary reason for the greater revenue to higher levels of economic growth. The Russian example is often used as proof of this, although an IMF study in 2006 found that there was no sign "of Laffer-type behavioral responses generating revenue increases from the tax cut elements of these reforms" in Russia or in other countries.<ref> [http://www.imf.org/external/pubs/ft/wp/2006/wp06218.pdf The "Flat Tax(es)": Principles and Evidence]</ref>


Cotton production became dominant in the area from the 1880s through the 1920s. The Georgetown and Granger Railroad (GGR) was completed to [[Austin, Texas|Austin]] in 1904. Extensive loss from a 1921 flood led Georgetown to seek flood control, an effort that culminated in the building of a dam to impound [[Lake Georgetown]], which opened officially on October 5, 1979. An unlicensed radio station appeared briefly in the 1930s, and Radio Station KGTN opened in 1962. At one time, Georgetown was served by two railroads, the International-Great Northern, which eventually was merged into the Missouri Pacific, and the Missouri-Kansas-Texas Railway. Currently, Georgetown is served by the appropriately named Georgetown Railroad, a 'short line' railroad that uses portions of the former M-K-T and the I-GN to connect with the Union Pacific Railroad at Round Rock and at Granger.
===Overall structure===
Some taxes other than the income tax (for example, taxes on sales and payrolls) tend to be regressive. Hence, making the income tax flat could result in a [[Regressive tax|regressive]] overall tax structure. Under such a structure, those with lower incomes tend to pay a ''higher'' proportion of their income in total taxes than the affluent do. The fraction of household income that is a return to capital (dividends, interest, royalties, profits of unincorporated businesses) is positively correlated with total household income.{{Fact|date=November 2007}} Hence a flat tax limited to wages would seem to leave the wealthy better off. Modifying the tax base can change the effects. A flat tax could be targeted at income (rather than wages), which could place the tax burden equally on all earners, including those who earn income primarily from returns on investment. Tax systems could utilize a flat [[sales tax]] to target all consumption, which can be modified with rebates or exemptions to remove regressive effects (such as the proposed [[FairTax]] in the U.S.<ref name="fairtaxbook">{{cite book | first=Neal | last=Boortz | coauthors=Linder, John | year=2006 | title=[[The FairTax Book]] | edition=Paperback | publisher=[[Regan Books]]|id=ISBN 0-06-087549-6 }}</ref>).


Population growth and industrial expansion continued modestly in the twentieth century until about 1960, when residential, commercial, and industrial development, due to major growth and urban expansion of nearby Austin, greatly accelerated. In fact, Fortune Small Business Magazine in a 2008 publication named Georgetown the No. 2 best city in the nation to live and launch.
===Border adjustable===
A flat tax system and income taxes overall are not inherently border-adjustable; meaning the tax component embedded into products via taxes imposed on companies (including [[corporate tax]]es and [[payroll tax]]es) are not removed when exported to a foreign country ''(see [[Effect of taxes and subsidies on price]])''. Taxation systems such as a [[sales tax]] or [[value added tax]] can remove the tax component when goods are exported and apply the tax component on imports. Under a flat tax, domestic products are at a disadvantage to foreign products (at home and abroad). Such a system greatly impacts the global competitiveness of a country. Though, it's possible that a flat tax system could be combined with tariffs and credits to act as border adjustments (the proposed ''Border Tax Equity Act'' in the U.S. attempts this). Implementing a income tax with a border adjustment tax credit is a violation of the [[World Trade Organization]] agreement.


In the historic neighborhoods, adaptive restoration has been widely practiced, with special emphasis on a Main Street program and private restoration of older homes. The city was recently named one of the best places to purchase an historic house. Today, Georgetown is home to one of the best preserved Victorian and Pre-WW1 downtown historic districts, with The Beaux-Arts Williamson County Courthouse (1911) as its centerpiece. Due to its successful preservation efforts, Georgetown was named a national Main Street City in 1997, the first Texas city so designated. In 1998, the city celebrated its 150th birthday with numerous community activities and parties. By 2000, Georgetown and Williamson County experienced tremendous growth, doubling the population.
===Race to the bottom===
{{main|Race to the bottom}}
An argument raised by opponents of the flat tax is that corporations or wealthy persons might move to countries with lower taxes, especially in a single country context. The argument states that this would lead to a race to the bottom in which countries compete to offer ever-lower taxes for the rich, so that the rich become even richer, while the poor and middle classes, unable to financially handle relocation to another country, are left to shoulder the entire cost of all government services. {{Fact|date=July 2007}} A consequence would be an ever-worsening under-funding and neglect of the public sector. {{Fact|date=July 2007}}


==Founding==
Opponents of the flat tax argue that the end result of this race to the bottom is social disintegration (see also [[failed state]]), a situation from which even the richest cannot benefit. It is argued that in order to prevent this it is the responsibility of local and national governments everywhere to ensure that the rich pay a fair share of the tax burden.{{Fact|date=January 2008}} Concepts such as flat rate taxes are therefore said to be irresponsible at a global level, even if they may seem to grant a temporary advantage at a national level. In other words, making economic conditions too desirable in one country may have the effect of forcing other countries to compete by making their conditions equally desirable.
The [[Tonkawa]] and [[Comanche]] Indians were some of the earliest to have a lived on the [[San Gabriel river]] many years before the arrival of the Spanish and settlers. Archaeologists have found evidence of Indian habitation that dates back some 11,700 years.


Georgetown, Texas is the county seat of Williamson County, which was formed on [[March 13]], [[1848]] after the early settlers petitioned the State Legislature to create it out of [[Milam County, Texas|Milam County]]. The county was originally to have been named San Gabriel County, but was instead named after Robert McAlpin Williamson (aka Three-Legged Willie), a Texas statesman and judge at the time.
==Around the world==
{{main|Tax rates around the world}}


Georgetown was founded in 1848. In a story relayed to historians, Washington Anderson tells of Georgetown’s beginnings. Anderson and the four other men assigned the task of locating a county seat were enjoying a brief respite under a large oak tree when Anderson’s cousin and prodigious landowner, George Washington Glasscock, Sr., rode up on his mule. Sensing a quick solution to their task, Anderson spoke up, “George, if you’ll give us all the land between here and the San Gabriel River, we’ll make this the county seat and name the town after you.” His cousin agreed, promptly donating {{convert|173|acre|km2|1}}, with his partner [[Thomas B. Huling]].
===Eastern Europe===
[[Image:Flat tax in Europe.svg|thumb|right|{{legend|#245423|Countries that have flat taxes}}
{{legend|#49A844|Countries considering flat taxes}}]]
Advocates of the flat tax argue that the former-[[Communist state]]s of [[Eastern Europe]] have benefited from the adoption of a flat tax. Most of these nations have experienced strong economic growth of 6% and higher in recent years, some of them, particularly the [[Baltic countries]], experience [[Baltic Tiger|exceptional GDP growth]] of around 10% yearly.
*[[Lithuania]], which levies a flat tax rate of 24% (previously 27%) on its citizens, has experienced amongst the fastest growth in Europe. Advocates of flat tax speak of this country's declining [[unemployment]] and rising standard of living. They also state that tax revenues have increased following the adoption of the flat tax, due to a subsequent decline in tax evasion and the [[Laffer curve]] effect. Others point out, however, that Lithuanian unemployment is falling at least partly as a result of mass emigration to [[Western Europe]]. The argument is that Lithuania's comparatively very low wages, on which a non-progressive flat tax is levied, combined with the possibility now to work legally in Western Europe since [[Enlargement of the European Union|accession]] to the [[European Union]], is forcing people to leave the country en masse. The Ministry of Labour estimated in 2004 that as many as 360,000 workers may have left the country by the end of that year, a prediction that is now thought to have been broadly accurate. The impact is already evident: in September 2004, the Lithuanian Trucking Association reported a shortage of 3,000-4,000 truck drivers. Large retail stores have also reported some difficulty in filling positions.<ref>http://www.state.gov/e/eb/ifd/2005/42068.htm</ref> However, the emigration trend has recently stopped{{Fact|date=May 2008}} as enormous [[real wage]] gains in Lithuania (presumably due to the shortage of workers) have caused a return of many migrants from Western Europe. In addition to that, it is clear that countries not levying a flat tax such as Poland also temporarily faced large waves of emigration after EU membership in 2004.{{Fact|date=May 2008}}
*Whilst in most countries the introduction of a flat tax has coincided with strong increases in growth and tax revenue, there is no proven causal link between the two. For example, it is also possible that both are due to a third factor, such as new government that may institute other reforms along with the flat tax. A study by the [[IMF]] showed that sharp increases in [[Russia]]n GDP growth and tax revenue around the time of the introduction of a 13% flat tax were not the result of the tax reform, but of a sharp increase in oil prices, strong [[real wage]] growth, and intensification in the prosecution of tax evasion.<ref>[http://www.imf.org/external/pubs/ft/survey/2005/022105.pdf IMF Survey: February 21, 2005<!-- Bot generated title -->]</ref>
*In [[Estonia]], which has had a 26% (24% in 2005, 23% in 2006, 22% in 2007, 21% in 2008, planned 20% in 2009, 19% in 2010, 18% in 2011) flat tax rate since 1994, studies have shown that the significant increase in tax revenue experienced was caused partly by a disproportionately rising [[Value added tax|VAT]] revenue.<ref name="osteuropa">[http://www.zeit.de/2005/36/Osteuropa Niedrige Steuer für alle: Osteuropa: Einige Länder haben die Einheitssteuer. Doch sie ist umstritten | ZEIT online<!-- Bot generated title -->]</ref> Moreover, Estonia and Slovakia have high social contributions, pegged to wage levels.<ref name="osteuropa"/> Both matters raise questions regarding the justice of the flat tax system, and thus its long-term viability. The Estonian economist and former chairman of his country's parliamentary budget committee [[Olev Raju]], stated in September 2005 that "income disparities are rising and calls for a progressive system of taxation are getting louder - this could put an end to the flat tax after the next election" [http://www.zeit.de/2005/36/Osteuropa]. However, this did not happen, since after the 2007 elections a right-wing coalition was formed which has stated its will to keep the flat tax in existence.


The early Georgetown was a population of immigrants with Swedish, German, Austrian, Swiss, Moravian and Czech settlers joining transplanted Americans from Tennessee, South Carolina and other Southern states.[[Image:SCT.jpg|thumb|right|An entrance sign to Sun City Texas.]]
=== Countries that have flat tax systems ===


==Retirement Capital of Texas==
These are countries, as well as minor jurisdictions with the autonomous power to tax, that have adopted tax systems that are commonly described in the media and the professional economics literature as a [[flat tax]].
In addition to being well known as having one of the best preserved and active historic downtowns in Texas, Georgetown is considered to be one of the best places to retire in the nation due to its fairly warm climate year round, close proximity to both the countryside and Austin, and because of its increasing population of retirees. Part of this is due to the fact that [[Sun City Texas]],a new and large adult community, calls the Georgetown home. Several thousand 55 and better residents reside there.


==Weather==
[[Image:Flat personal income tax.png|400px|||{{legend|#007f00|flat personal income tax >0%}}
Georgetown, like much of [[Central Texas]], is characterized by its long and hot summers with cooler, very enjoyable winters. The average summer temperature tops out at around 100 degrees during July and August. It is common for highs to be near 90 well into October but by this time the nights are noticeably cooler, giving the weather a more desert like feel.
{{legend|#00ff00|flat personal [[Income tax#Countries with no personal income tax|income tax 0%]]}}]]


Winters in Georgetown is considered by many to be very comfortable. Much of the winter months have highs in the 50s and 60’s with a few days dropping near freezing, providing the region with one or two ice storms per season. On the other hand, a few days will reach well above the average. It is not uncommon for the region to experience 70’s well into December and January.
<!------------------------------------------------------------------
Please try to keep these in alphabetical order. Alvin Rabushka tends to write a little article every time the flat tax is adopted in a country, and his articles are reliable sources, but it is a good idea to also find other sources. In particular, if a country has adopted a system of which it is debatable whether it is truly a flat tax, we should include some discussion of the particular features of that country's system. You can find flag templates for all countries and minor jurisdictions on [[Wikipedia:Inline templates linking countries]]


Fall, winter and spring all average about two to three inches of rain per month while July and August are the driest averaging only one to two inches and sometimes will provide no precipitation at all. Most of what rain does fall during the long summer months comes from the outflow of Gulf storms that are often pushed away from the region by a large summer high pressure.
IMPORTANT: IF YOU DON'T HAVE SOURCES, OR THE FLATNESS IS DEBATABLE, STICK THE COUNTRY IN THE "MAYBE" SECTION.
------------------------------------------------------------------->
* {{flag|Bulgaria}} <ref>The Associated Press. "Bulgarian parliament approves 2008 budget that foresees record 3 percent surplus".
[http://www.iht.com/articles/ap/2007/12/20/business/EU-FIN-ECO-Bulgaria-Budget.php]</ref>


==Education==
*{{ALB}} <ref>Daniel Mitchell. "Albania Joins the Flat Tax Club." Cato at Liberty, April 9, 2007. [http://www.cato-at-liberty.org/2007/04/09/albania-joins-the-flat-tax-club/]</ref> <ref>Jonilda Koci. "Albanian government approves 10% flat tax". Southeast European Times, June 4, 2007. [http://www.balkantimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2007/06/04/feature-03]</ref>
The City of Georgetown is served by the [[Georgetown Independent School District]].
Schools include:
Georgetown High School (Grades 10-12),
Richarte High School (Grades 9-12),
Georgetown 9th Grade Campus (Grade 9),
Tippit Middle School (Grades 6-8),
Forbes Middle School (Grades 6-8),
Benold Middle School (Grades 6-8),
McCoy Elementary (Grades 3-5),
Williams Elementary (Grades 3-5),
Ford Elementary (Grades PK-5)
Village Elementary (Grades K-5),
Frost Elementary (Grades PK-2),
Purl Elementary (Grades PK-2),
Cooper Elementary (Grades K-5),
Pickett Elementary (Grades 3-5), &
Carver Elementary (Grades PK-2),
Mitchell Elementary (grades PK-5)


==Sites of interest==
*{{flagicon|Czech Republic}} [[Czech Republic]]<ref>Alvin Rabushka. "The Flat Tax Spreads to the Czech Republic." hoover.org, 27 August 2008.
[[Image:Williamson county courthouse 2008.jpg|thumb|right|The Williamson County courthouse after its 2006-2007 renovation.]]
[http://www.hoover.org/research/russianecon/essays/9400171.html]</ref>
*Historic Downtown
*[[Dalhart Windberg|Winberg]] Art Gallery
*Founder's Park
*Williamson County Courthouse - The court house was built in 1911 at a cost of $120,000. The design by architect C.H. Paige is an example of [[Beaux-Arts architecture]]. The courthouse is undergoing renovation with expected re-opening in 2007.
*Williamson County Museum on the Courthouse
*Palace Theater (1925)
*Grace Heritage Center
*Georgetown Firefighters Museum
*[[Inner Space Cavern]]
*[[Southwestern University]]
*[[Lake Georgetown]]
*Williamson County Museum
*San Gabriel Park
*Williamson County Art Guild


==References==
* {{EST}} <ref>Alvin Rabushka. "Estonia Plans to Reduce its Flat-Tax Rate." March 26, 2007. [http://www.hoover.org/research/russianecon/essays/6711412.html]</ref><ref>Toby Harnden. "Pioneer of the 'flat tax' taught the East to thrive." ''Telegraph,'' April 9, 2005.[http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2005/09/04/nflat104.xml&sSheet=/news/2005/09/04/ixhome.html]</ref><ref name="imf-report">Michael Keen, Yitae Kim, and Ricardo Varsano. "The 'Flat Tax(es)': Principles and
<references />
Evidence." IMF Working Paper WP/06/218.[http://www.imf.org/external/pubs/ft/wp/2006/wp06218.pdf]</ref>


==External links==
* {{GEO}} <ref>Alvin Rabushka. "The Flat Tax Spreads to Georgia." January 3, 2005.[http://www.russiaeconomy.org/comments/010305.html]</ref><ref name="imf-report"/>
*[http://www.georgetownrealestateexpert.com/blog Get the INSIDE SCOOP on the Georgetown Community & its Real Estate from a Realtor and Former Planning & Zoning Commissioner's Blog]
*[http://www.williamson-county-historical-commission.org/GEORGETOWN_TEXAS/Georgetown_Texas_Williamson_County.htm Williamson County Historical Commission page on Georgetown]
*[http://docs.google.com/Doc?docid=df2j2dg9_0x8dx7fj8&hl=en A Permit to Protest?]
*[http://www.georgetown360.com Newly Launched Community Portal for Georgetown Texas]
*[http://www.georgetown.org City of Georgetown website]
*[http://www.georgetowncustomhomes.com/blog Georgetown Texas Real Estate Blog]
*[http://www.visitgeorgetown.com Visit Georgetown]
*[http://www.georgetown-texas.org PICTORIAL HISTORY OF GEORGETOWN]
{{Geolinks-US-cityscale|30.651187|-97.681333}}
*[http://www.southwestern.edu/ Southwestern University]
*[http://www.innerspace.com/ Inner Space Cavern]
*[http://www.georgetownisd.org/ Georgetown ISD]
*[http://www.thegeorgetownpalace.org/ The Palace Theater]
*[http://georgetownheritagesociety.com Georgetown Heritage Society]
*[http://www.williamsonmuseum.org Williamson County Museum]
*[http://three-legged-willie.org Three-Legged Willie]
* {{Handbook of Texas|id=GG/hfg3|name=Georgetown}}
*[http://www.ifoundgeorgetown.com iFoundGeorgetown]
*[http://www.georgetownchamber.org/ Georgetown Chamber of Commerce]


{{Williamson County, Texas}}
* {{GGY}} <ref name="flat-and-flatter"/>
{{Texas}}


{{Texas county seats}}
*{{Flag|Kazakhstan}} <ref>The Economist Intelligence Unit, Kazakhstan fact sheet. "In 2007 Kazakhstan introduced several changes to the taxation system. The flat-rate VAT on all goods was reduced from 15% to 14%, and a flat rate of income tax of 10% was introduced, in place of the previous progressive range of 5-20%." [http://www.economist.com/countries/Kazakhstan/profile.cfm?folder=Profile-FactSheet]</ref>

* {{ISL}} <ref>Daniel Mitchell. "Iceland Comes in From the Cold With Flat Tax Revolution." March 27, 2007.[http://www.cato.org/pub_display.php?pub_id=8155]</ref> <ref name="flat-and-flatter"/> <ref>The [[Globe and Mail]], as quoted on Cato-at-liberty by Daniel Mitchell: "Effective this year, Iceland (population: 300,000) taxes all personal income at a flat rate of 32 per cent — which appears high because it includes municipal as well as national taxes." [http://www.cato-at-liberty.org/2007/05/08/the-global-flat-tax-revolution-continues/]</ref> Iceland's system differs from the Hall-Rabushka flat tax by taxing investment income and allowing numerous exceptions.<ref>Daniel Mitchell. "Iceland Joins the Flat Tax Club." Cato Tax and Budget Bulletin, February 2007. [http://www.cato.org/pubs/tbb/tbb_0207-43.pdf]</ref>

* {{Flag|Iraq}} <ref>Daniel Mitchell. "If a Flat Tax is Good for Iraq, How About America?" ''Heritage foundation'', November 10, 2003. [http://www.heritage.org/Press/Commentary/ed111003c.cfm].</ref> <ref>Alvin Rabushka. "The Flat Tax in Iraq: Much Ado About Nothing—So Far." May 6, 2004. [http://www.hoover.org/research/russianecon/essays/5145652.html]</ref> <ref>Noam Chomsky. "Transfer real sovereignty." ''znet'', May 11, 2004. [http://blog.zmag.org/ee_links/transfer_real_sovereignty]</ref> It is not clear how effectively the Iraqi tax is being collected in practice.

* {{JEY}} <ref>http://ec.europa.eu/economy_finance/publications/publication415_en.pdf</ref>

* {{KGZ}} <ref name="flat-and-flatter">Alvin Rabushka. "Flat and Flatter Taxes Continue to Spread Around the Globe." January 16, 2007.[http://www.hoover.org/research/russianecon/essays/5222856.html]</ref>

* {{LVA}} <ref name="imf-report"/>

* {{LTU}} <ref>Alvin Rabushka. "A Competitive Flat Tax Spreads to Lithuania." November 2, 2005.[http://www.russianeconomy.org/comments/110205.html]</ref><ref name="imf-report"/>

* {{MKD}} <ref>"The lowest flat corporate and personal income tax rates." ''Invest Macedonia'' government web site. Retrieved June 6, 2007. [http://www.investinmacedonia.org/news.aspx?news=35]</ref> <ref name="flat-and-flatter"/>

* {{MNG}} <ref>Alvin Rabushka. "The Flat Tax Spreads to Mongolia." January 30, 2007.[http://www.hoover.org/research/russianecon/essays/5471761.html]</ref>

* {{MNE}} <ref>Alvin Rabushka. "The Flat Tax Spreads to Montenegro." April 13, 2007. [http://www.hoover.org/research/russianecon/essays/7019202.html]</ref>

* {{MUS}} <ref name="flat-and-flatter" />

* {{ROU}} <ref name="imf-report"/>

* {{RUS}} <ref>Alvin Rabushka. "Russia adopts 13% flat tax." July 26, 2000.[http://www.russiaeconomy.org/comments/072600.html]</ref><ref name="imf-report"/>

* {{SRB}} <ref>Alvin Rabushka. "The Flat Tax Spreads to Serbia." March 23, 2004.[http://www.russiaeconomy.org/comments/032304.html]</ref>

* {{SVK}} <ref name="imf-report"/>

* {{UKR}} <ref>Alvin Rabushka. "The Flat Tax Spreads to Ukraine." May 27, 2003.[http://www.russiaeconomy.org/comments/052703.html]</ref><ref name="imf-report"/>

Also:

* [[Transnistria]], also known as Transnistrian Moldova or Pridnestrovie. <ref>Transnistrian government web site. [http://pridnestrovie.net/flattax.html]</ref> This is a disputed territory, but the authority that seems to have ''de facto'' government power in the area claims to levy a flat tax.

<div style="clear:both;"> <!-- This aligns the images -->

=== Countries reputed to have a flat tax ===

* {{HKG}} Some sources claim that Hong Kong has a flat tax,<ref name="broken">Daniel Mitchell. "Fixing a Broken Tax System with a Flat Tax." ''Capitalism Magazine,'' April 23, 2004.[http://www.capmag.com/article.asp?ID=3636]</ref> though its salary tax structure has several different rates ranging from 2% to 20% after deductions. Taxes are capped at 16% of gross income, so this rate is applied to upper income returns if taxes would exceed 16% of gross otherwise.<ref>Duncan B. Black. "Hyman falsely claimed Hong Kong imposes flat tax on income," ''Media Matters'', Jan 27, 2005. [http://mediamatters.org/items/200501270004]</ref> Accordingly, Duncan B. Black of ''Media Matters for America,'' says "Hong Kong's 'flat tax' is better described as an 'alternative maximum tax.'" <ref>Duncan B. Black. "Fund wrong on Hong Kong 'flat tax'." ''Media Matters'', Feb 28, 2005. [http://mediamatters.org/items/200502280004]</ref> Alan Reynolds of the Cato Institute similarly notes that Hong Kong's "tax on salaries is not flat but steeply progressive."<ref>Alan Reynolds. "Hong Kong's Excellent Taxes." ''townhall.com'', but the column was syndicated. June 6, 2005. [http://www.cato.org/pub_display.php?pub_id=3793]</ref> Hong Kong has, nevertheless, a flat profit tax regime.

=== Countries considering a flat tax system ===

These are countries where concrete flat tax proposals are currently being considered by influential politicians or political parties.

* {{flag|Hungary}}
* {{flag|Poland}} In 2007 elections, the [[Civic Platform]] gained 41.5% of the votes, running on a 15% flat tax as one of the main points in the party program.<ref>"[http://www.adamsmith.org/blog/archives/001120.php Poland brings in flat tax]", Adam Smith Institute</ref>
* {{flag|Greece}} There are some articles from 2005 indicating that the Greek government considered a flat tax. If it is still on the table, it apparently hasn't passed yet as of February 2008.<ref>Greece joins the flat rate tax bandwagon. By George Trefgarne, Economics Editor. The Telegraph. 2005. [http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/08/15/cngreec15.xml]</ref><ref>"Flat tax rate on the cards." Kathimerini. 11 July 2005.
[http://www.ekathimerini.com/4dcgi/_w_articles_politics_100005_11/07/2005_58468]</ref>

==Recent and current proposals==

Flat tax proposals have made something of a "comeback" in recent years. In the [[United States]], former [[House Majority Leader]] [[Dick Armey]] and [[FreedomWorks]] have sought [[grassroots]] support for the flat tax ([[Taxpayer Choice Act]]). In other countries, flat tax systems have also been proposed, largely as a result of flat tax systems being introduced in several countries of the former [[Eastern Bloc]], where it is generally thought to have been successful, although this assessment has been disputed (see below).<ref name="bartlett">[http://www.nationalreview.com/nrof_bartlett/bartlett200311100918.asp Flat-Tax Comeback] Bruce Bartlett, ''National Review'', November 10, 2003</ref> This has elicited much interest from countries such as the [[United States|US]], where it has gone hand in hand with a general swing towards [[conservatism]].<ref name="clark">[http://www.guardian.co.uk/comment/story/0,3604,1598988,00.html Cameron is no moderate], Neil Clark, ''The Guardian'' October 24, 2005</ref>

:''See also [[Tax rates around the world]]''

The countries that have recently reintroduced flat taxes have done so largely in the hope of boosting economic growth. The [[Baltic countries]] of [[Estonia]], [[Latvia]] and [[Lithuania]] have had flat taxes of 24%, 25% and 33% respectively with a [[tax exemption|tax exempt]] amount, since the mid-1990s. On [[1 January]][[2001]], a 13% flat tax on personal income took effect in [[Russia]]. [[Ukraine]] followed Russia with a 13% flat tax in 2003, which later increased to 15% in 2007. [[Slovakia]] introduced a 19% flat tax on most taxes (that is, on corporate and personal income, for [[VAT]] etc., almost without exceptions) in 2004; [[Romania]] introduced a 16% flat tax on personal income and corporate profit on [[January 1]] [[2005]]. [[Republic of Macedonia|Macedonia]] introduced a 12% flat tax on personal income and corporate profit on [[January 1]] [[2007]] and promised to cut it to 10% in 2008.[http://www.investinmacedonia.org/news.aspx?news=35] Albania will be implementing a 10% flat tax from 2008.<ref>[http://www.setimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2007/04/06/feature-02 Albanian government to implement flat tax (SETimes.com)<!-- Bot generated title -->]</ref>

In the [[United States]], while the [[Federal income tax]] is progressive, five states — [[Illinois]], [[Indiana]], [[Massachusetts]], [[Michigan]] and [[Pennsylvania]] — tax household incomes at a single rate, ranging from 3% (Illinois) to 5.3% (Massachusetts). Pennsylvania even has a ''pure'' flat tax with no zero-bracket amount.

[[Greece]] (25%) and [[Croatia]] are planning to introduce flat taxes. {{Fact|date=May 2007}} [[Paul Kirchhof]], who was suggested as the next Finance minister of Germany in 2005, proposed introducing a flat tax rate of 25% in Germany as early as 2001, which sparked widespread controversy. Some claim the [[Taxation in Germany|German tax system]] is the most complex one in the world.{{Fact|date=May 2007}}

On [[27 September]] [[2005]], the [[Netherlands|Dutch]] Council of Economic Advisors recommended a high flat rate of 40% for income tax in the [[Netherlands]].{{Fact|date=May 2007}} Some deductions would be allowed, and persons over 65 years of age would be taxed at a lower rate.

In the United States, proposals for a flat tax at the federal level have emerged repeatedly in recent decades during various political debates. [[Jerry Brown]], former [[United States Democratic Party|Democratic]] [[Governor of California]], made the adoption of a flat tax part of his platform when running for [[President of the United States]] in [[U.S. presidential election, 1992|1992]]. At the time, rival Democratic candidate [[Tom Harkin]] ridiculed the proposal as having originated with the "[[Flat Earth Society]]". Four years later, [[United States Republican Party|Republican]] candidate [[Steve Forbes]] proposed a similar idea as part of his core platform. Although neither captured his party's nomination, their proposals prompted widespread debate about the current U.S. income tax system.

Flat tax plans that are presently being advanced in the United States also seek to redefine "sources of income"; current progressive taxes count [[interest]], [[dividends]] and [[capital gains]] as income, for example, while [[Steve Forbes]]'s variant of the flat tax would apply to wages only.{{Fact|date=May 2007}}

In 2005 [[United States Senate|Senator]] [[Sam Brownback]], a [[Republican Party (United States)|Republican]] from [[Kansas]], stated he had a plan to implement a flat tax in [[Washington, D.C.]].{{Fact|date=May 2007}} This version is one flat rate of 15% on all earned income. Unearned income (in particular capital gains) would be exempt. His plan also calls for an exemption of $30,000 per family and $25,000 for singles. [[Mississippi]] Republican Senator [[Trent Lott]] stated he supports it and would add a $5,000 credit for first time home buyers and exemptions for out of town businesses. DC Delegate [[Eleanor Holmes Norton]]'s position seems unclear, however DC mayor [[Anthony A. Williams|Anthony Williams]] has stated he is "open" to the idea.

Flat taxes have also been considered in the United Kingdom by the [[Conservative Party (UK)|Conservative Party]]. However, it has been roundly rejected by [[Gordon Brown]], then [[Chancellor of the Exchequer]] for Britain's ruling [[Labour Party (UK)|Labour Party]], who said that it was "An idea that they say is sweeping the world, well sweeping Estonia, well a wing of the neo-conservatives in Estonia", and criticised it thus: "The millionaire to pay exactly the same tax rate as the young nurse, the home help, the worker on the minimum wage".<ref name="gordon">[http://politics.guardian.co.uk/labour2005/story/0,16394,1578857,00.html Gordon Brown's speech to the Labour party conference] September 26, 2005</ref>

Flat tax proposals differ in how they define and measure what is subject to tax.

===Flat tax with deductions===
US Congressman [[Dick Armey]] has advocated a flat tax on all income in excess of an amount shielded by household type and size. For example, draft legislation proposed by Armey would allow married couples filing jointly to deduct $26,200, unmarried heads of household to deduct $17,200, and single adults, $13,100. $5,300 would be deducted for each dependent. A household would pay tax at a flat rate of 17% on the excess. Businesses would pay a flat 17% rate on all profits. Others have put forth similar proposals with various rates and deductions. Armey defined income to include only salary, wages, and pensions; capital gains and all other sources of wealth appreciation were excluded from taxation under his proposal.<ref>[http://www.ncpa.org/ba/ba136.html The Armey Flat Tax], National Center for Policy Analysis</ref>

While campaigning for the American presidency in 1996 and 2000, [[Steve Forbes]] called for replacing the income tax by a tax at the flat rate of 17% of [[consumption tax|consumption]], defined as income minus savings, in excess of an amount determined by the type and size of the household.{{Fact|date=May 2007}} For example, the exempt amount for a family of four would be $42,000 per year.

Modified flat taxes have been proposed which would allow deductions for a very few items, while still eliminating the vast majority of existing deductions. Charitable deductions and home mortgage interest are the most discussed exceptions, as these are popular with voters and often used.

=== Hall-Rabushka flat tax ===
Designed by economists at the [[Hoover Institution]], Hall-Rabushka is a fully developed flat tax on [[consumption tax|consumption]] (taxing consumption is thought by economists to be more efficient than taxing income).<ref>[http://www.hoover.org/publications/books/3602666.html Hoover Institution - Books - The Flat Tax<!-- Bot generated title -->]</ref> Loosely speaking, Hall-Rabushka accomplishes this by taxing income and then excluding investment. An individual could file a Hall-Rabushka tax return on a postcard. [[Robert Hall (economist)|Robert Hall]] and Alvin Rabushka have consulted extensively in designing the flat tax systems in Eastern Europe.

===Negative income tax===
{{main|Negative income tax}}
The Negative Income Tax (NIT) which [[Milton Friedman]] proposed in his 1962 book ''[[Capitalism and Freedom]]'' is a type of flat tax. The basic idea is the same as a flat tax with personal deductions, except that when deductions exceed income, the taxable income is allowed to become negative rather than being set to zero. The flat tax rate is then applied to the resulting "negative income," resulting in a "negative income tax" the government owes the household, unlike the usual "positive" income tax, which the household owes the government.

For example, let the flat rate be 20%, and let the deductions be $20,000 per adult and $7,000 per dependent. Under such a system, a family of four making $54,000 a year would owe no tax. A family of four making $74,000 a year would owe tax amounting to 0.2(74,000-54,000) = $4,000, as under a flat tax with deductions. But families of four earning less than $54,000 per year would owe a "negative" amount of tax (that is, it would receive money from the government). E.g., if it earned $34,000 a year, it would receive a check for $4,000.

The NIT is intended to replace not just the [[United States|USA]]'s income tax, but also many benefits low income American households receive, such as [[food stamps]] and [[Medicaid]]. The NIT is designed to avoid the [[welfare trap]]—effective high marginal tax rates arising from the rules reducing benefits as market income rises. An objection to the NIT is that it is welfare without a work requirement. Those who would owe negative tax would be receiving a form of welfare without having to make a try to obtain employment. This is essentially a moral objection based on the [[Puritan work ethic]]; the advocates of negative tax agree that this would happen, but do not consider it a problem. Another objection is that the NIT subsidizes industries employing low cost labor, but this objection can also be made against current systems of benefits for the [[working poor]].

===True flat income tax===
As per the definition at the beginning of the article, a true flat tax is a system of taxation where one tax rate is applied to all income with no exceptions.

In an article titled [http://www.economist.com/printedition/displayStory.cfm?Story_ID=3861190 The flat-tax revolution], dated April 14, 2005, ''[[The Economist]]'' argued as follows: If the goals are to reduce [[corporate welfare]] and to enable household tax returns to fit on a postcard, then a true flat tax best achieves those goals. The flat rate would be applied to all taxable income and profits without exception or exemption. It could be argued that under such an arrangement, no one is subject to a preferential or "unfair" tax treatment. No industry receives special treatment, large households are not advantaged at the expense of small ones, etc. Moreover, the cost of tax filing for citizens and the cost of tax administration for the government would be further reduced, as under a true flat tax only businesses and the self-employed would need to interact with the tax authorities.

==See also==
''Economic Concepts''
*[[Fiscal drag]] (also known as Bracket creep)
*[[Taxable income elasticity]] (also known as Laffer Curve)

''Tax Systems''
*[[Consumption tax]]
*[[FairTax]]
*[[Income tax]]
*[[Negative income tax]]
*[[Progressive tax]]
*[[Real property use tax]]
*[[Regressive tax]]
*[[Sales tax]]
*[[Value added tax]]

==Notes==
{{reflist}}

==References==
*[[Steve Forbes]], 2005. ''Flat Tax Revolution''. Washington: Regnery Publishing. ISBN 0-89526-040-9
*[[Robert Hall (economist)|Robert Hall]] and [[Alvin Rabushka]], 1995 (1985). ''[http://www-hoover.stanford.edu/publications/books/flattax.html The Flat Tax]''. Hoover Institution Press.
*Anthony J. Evans, "[http://www.openrepublic.org/open_republic/20050701_vol1_no1/articles/20050619_ft.htm Ideas and Interests: The Flat Tax]" ''Open Republic'' 1(1), 2005

==External links==
{{wikiquote|Taxation}}
*[http://www.heritage.org/Research/Taxes/bg1765.cfm The Laffer Curve: Past, Present and Future]: A detailed examination of the theory behind the Laffer curve, and many case studies of tax cuts on government revenue in the United States
*[http://www.econtalk.org/archives/2007/04/rabushka_on_the.html Podcast of Rabushka discussing the flat tax] Alvin Rabushka discusses the flat tax with [[Russ Roberts]] on [[EconTalk]].


[[Category:Tax reform]]
[[Category:Cities in Texas]]
[[Category:Taxation and redistribution]]
[[Category:Williamson County, Texas]]
[[Category:County seats in Texas]]
[[Category:Austin-Round Rock metropolitan area]]
[[Category:Settlements established in 1848]]


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Revision as of 05:35, 10 October 2008

Georgetown, Texas
City
Nickname(s): 
Red Poppy Capital of Texas, Retirement Capital of Texas, Gtown
Motto: 
"Sincerely Yours"
Location of Georgetown, Texas
Location of Georgetown, Texas
CountryUnited States
StateTexas
CountyWilliamson
Government
 • TypeMayor/Council
 • MayorGeorge Garver
 • City ManagerPaul Brandenburg
Area
 • Total24.9 sq mi (64.6 km2)
 • Land22.8 sq mi (59.1 km2)
 • Water2.1 sq mi (5.4 km2)
Elevation
755 ft (230 m)
Population
 (2008)
 • Total48,202
 • Density2,114/sq mi (816/km2)
Time zoneUTC-6 (Central (CST))
 • Summer (DST)UTC-5 (CDT)
ZIP codes
78626, 78627, 78628 & 78633
Area code512
FIPS code48-29336Template:GR
GNIS feature ID1357960Template:GR
Websitewww.georgetown.org
File:DOWNTOWN GTOWN.jpg
Downtown Georgetown is considered to be the jewel of the city and is also known as one of the best preserved historic downtowns in the state.

Georgetown is a suburban community in Williamson County, Texas, United States. The population was 28,339 at the 2000 census but recent 2008 estimates show the city to have a population of just under 50,000. It is the county seat of Williamson County.Template:GR Southwestern University is located in Georgetown, about 1/2 mile east of the historic square. A popular tourist attraction, Inner Space Cavern is a cave found on the southside of the city, just off Interstate 35.

Geography

Georgetown is located at 30°39′4″N 97°40′53″W / 30.65111°N 97.68139°W / 30.65111; -97.68139Invalid arguments have been passed to the {{#coordinates:}} function (30.651187, -97.681333)Template:GR, 26 miles (42 km) north of Austin's Central Business District.

According to the United States Census Bureau, the city has a total area of 24.9 square miles (64.6 km²), of which, 22.8 square miles (59.1 km²) of it is land and 2.1 square miles (5.4 km²) of it (8.42%) is water.

The city is located on the northeastern edge of Texas Hill Country, providing karst topography in western parts with more arable land to the east. The San Gabriel River runs through the city providing miles of hike and bike trails, several parks and recreation for both residents and visitors.

File:N SAN GAB RIV.jpg
Young adults cliff diving off the banks of the San Gabriel River.

Demographics

As of the censusTemplate:GR of 2000, there were 28,340 people, 10,393 households, and 7,711 families residing in the city. The population density was 1,241.3 people per square mile (479.3/km²). There were 10,902 housing units at an average density of 477.5/sq mi (184.4/km²). The racial makeup of the city was 85.39% White, 3.39% African American, 0.35% Native American, 0.67% Asian, 0.05% Pacific Islander, 8.31% from other races, and 1.83% from two or more races. Hispanic or Latino of any race were 18.07% of the population.

There were 10,393 households out of which 31.8% had children under the age of 18 living with them, 61.6% were married couples living together, 9.5% had a female householder with no husband present, and 25.8% were non-families. 21.5% of all households were made up of individuals and 9.3% had someone living alone who was 65 years of age or older. The average household size was 2.52 and the average family size was 2.92.

In the city the population was spread out with 23.4% under the age of 18, 11.4% from 18 to 24, 26.3% from 25 to 44, 21.3% from 45 to 64, and 17.7% who were 65 years of age or older. The median age was 37 years. For every 100 females there were 95.0 males. For every 100 females age 18 and over, there were 91.1 males.

The median income for a household in the city was $54,098, and the median income for a family was $63,338. Males had a median income of $40,541 versus $27,082 for females. The per capita income for the city was $24,287. About 4.4% of families and 7.2% of the population were below the poverty line, including 9.3% of those under age 18 and 3.9% of those age 65 or over.

History

Georgetown, the county seat of Williamson County, was founded in 1848 at the fork of the San Gabriel River. The town was named for George Washington Glasscock who donated the land for the new town. Early pioneers were attracted to the area's abundance of timber and good, clear water, just as the Tonkawa Indians, who thrived in the area for many years. In addition, the land was inexpensive and extremely fertile.

Georgetown remained an agrarian community for most of the 19th and early 20th centuries. The establishment of Southwestern University in 1873 and construction of a railroad in 1878 contributed to the town's growth and importance. A stable economy was based largely on agriculture, mainly cotton. The Chisholm Trail, a cattle trail that led from Texas to the railcenters in Kansas and Missouri crossed through the heart of Georgetown.

Cotton production became dominant in the area from the 1880s through the 1920s. The Georgetown and Granger Railroad (GGR) was completed to Austin in 1904. Extensive loss from a 1921 flood led Georgetown to seek flood control, an effort that culminated in the building of a dam to impound Lake Georgetown, which opened officially on October 5, 1979. An unlicensed radio station appeared briefly in the 1930s, and Radio Station KGTN opened in 1962. At one time, Georgetown was served by two railroads, the International-Great Northern, which eventually was merged into the Missouri Pacific, and the Missouri-Kansas-Texas Railway. Currently, Georgetown is served by the appropriately named Georgetown Railroad, a 'short line' railroad that uses portions of the former M-K-T and the I-GN to connect with the Union Pacific Railroad at Round Rock and at Granger.

Population growth and industrial expansion continued modestly in the twentieth century until about 1960, when residential, commercial, and industrial development, due to major growth and urban expansion of nearby Austin, greatly accelerated. In fact, Fortune Small Business Magazine in a 2008 publication named Georgetown the No. 2 best city in the nation to live and launch.

In the historic neighborhoods, adaptive restoration has been widely practiced, with special emphasis on a Main Street program and private restoration of older homes. The city was recently named one of the best places to purchase an historic house. Today, Georgetown is home to one of the best preserved Victorian and Pre-WW1 downtown historic districts, with The Beaux-Arts Williamson County Courthouse (1911) as its centerpiece. Due to its successful preservation efforts, Georgetown was named a national Main Street City in 1997, the first Texas city so designated. In 1998, the city celebrated its 150th birthday with numerous community activities and parties. By 2000, Georgetown and Williamson County experienced tremendous growth, doubling the population.

Founding

The Tonkawa and Comanche Indians were some of the earliest to have a lived on the San Gabriel river many years before the arrival of the Spanish and settlers. Archaeologists have found evidence of Indian habitation that dates back some 11,700 years.

Georgetown, Texas is the county seat of Williamson County, which was formed on March 13, 1848 after the early settlers petitioned the State Legislature to create it out of Milam County. The county was originally to have been named San Gabriel County, but was instead named after Robert McAlpin Williamson (aka Three-Legged Willie), a Texas statesman and judge at the time.

Georgetown was founded in 1848. In a story relayed to historians, Washington Anderson tells of Georgetown’s beginnings. Anderson and the four other men assigned the task of locating a county seat were enjoying a brief respite under a large oak tree when Anderson’s cousin and prodigious landowner, George Washington Glasscock, Sr., rode up on his mule. Sensing a quick solution to their task, Anderson spoke up, “George, if you’ll give us all the land between here and the San Gabriel River, we’ll make this the county seat and name the town after you.” His cousin agreed, promptly donating 173 acres (0.7 km2), with his partner Thomas B. Huling.

The early Georgetown was a population of immigrants with Swedish, German, Austrian, Swiss, Moravian and Czech settlers joining transplanted Americans from Tennessee, South Carolina and other Southern states.

An entrance sign to Sun City Texas.

Retirement Capital of Texas

In addition to being well known as having one of the best preserved and active historic downtowns in Texas, Georgetown is considered to be one of the best places to retire in the nation due to its fairly warm climate year round, close proximity to both the countryside and Austin, and because of its increasing population of retirees. Part of this is due to the fact that Sun City Texas,a new and large adult community, calls the Georgetown home. Several thousand 55 and better residents reside there.

Weather

Georgetown, like much of Central Texas, is characterized by its long and hot summers with cooler, very enjoyable winters. The average summer temperature tops out at around 100 degrees during July and August. It is common for highs to be near 90 well into October but by this time the nights are noticeably cooler, giving the weather a more desert like feel.

Winters in Georgetown is considered by many to be very comfortable. Much of the winter months have highs in the 50s and 60’s with a few days dropping near freezing, providing the region with one or two ice storms per season. On the other hand, a few days will reach well above the average. It is not uncommon for the region to experience 70’s well into December and January.

Fall, winter and spring all average about two to three inches of rain per month while July and August are the driest averaging only one to two inches and sometimes will provide no precipitation at all. Most of what rain does fall during the long summer months comes from the outflow of Gulf storms that are often pushed away from the region by a large summer high pressure.

Education

The City of Georgetown is served by the Georgetown Independent School District. Schools include: Georgetown High School (Grades 10-12), Richarte High School (Grades 9-12), Georgetown 9th Grade Campus (Grade 9), Tippit Middle School (Grades 6-8), Forbes Middle School (Grades 6-8), Benold Middle School (Grades 6-8), McCoy Elementary (Grades 3-5), Williams Elementary (Grades 3-5), Ford Elementary (Grades PK-5) Village Elementary (Grades K-5), Frost Elementary (Grades PK-2), Purl Elementary (Grades PK-2), Cooper Elementary (Grades K-5), Pickett Elementary (Grades 3-5), & Carver Elementary (Grades PK-2), Mitchell Elementary (grades PK-5)

Sites of interest

The Williamson County courthouse after its 2006-2007 renovation.
  • Historic Downtown
  • Winberg Art Gallery
  • Founder's Park
  • Williamson County Courthouse - The court house was built in 1911 at a cost of $120,000. The design by architect C.H. Paige is an example of Beaux-Arts architecture. The courthouse is undergoing renovation with expected re-opening in 2007.
  • Williamson County Museum on the Courthouse
  • Palace Theater (1925)
  • Grace Heritage Center
  • Georgetown Firefighters Museum
  • Inner Space Cavern
  • Southwestern University
  • Lake Georgetown
  • Williamson County Museum
  • San Gabriel Park
  • Williamson County Art Guild

References


External links

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