"Latvia, which recently joined the OECD, has a relatively low corporate tax rate of 15 percent, speedy cost recovery, and a flat individual income tax," notes the report.
The index seeks to measure the extent to which a country’s tax system adheres to two important aspects of tax policy: competitiveness and neutrality.
A competitive tax code is one that keeps marginal tax rates low, while a neutral tax code is one that seeks to raise the most revenue with the fewest economic distortions.
