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To: frankw1900 who wrote (3551)	11/16/2001 10:18:29 AM
From: ahhaha	Read Replies (1) of 24758

My point was that the capital flowing to Russia comes from Russia. It doesn't matter whether constructive tax policy also attracts foreign capital. The comparison between economies A and B was made only to contrast what happens under flat tax. If you are Russian, you know how to deal with the integrity of transactions because whatever the norm, you're adapted. Whatever the financial integrity of deals a certain number will fail. No doubt in Russia this is higher and no doubt it will be falling, but an allowance for lack of integrity has no lasting implications for overall economic benefit. The same is true in the US. You have to be adapted to the local probability of being defrauded.

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