Croats, taxes are killing your economy. Cut them off/Lower the taxes!

In occasion of Free Market Road Show Zagreb, Matt Kibbe was interviewed by the Croatian newspaper  Vecernji List – Croatia.

Matt Kibbe is one of the most influential advocates for minimal government and free markets and plays a very important role on Capitol Hill, lobbying for his powerful organization -FreedomWorks. He is a co-author of the Tea Party Manifest, a bestseller from 2010.


During his visit to Zagreb for the Free Market Road Show event, he talked about the Croatian economic system and tax reforms that should be implemented. Kibbe stated that he is not against all taxes, as he explained further – he is in favor of those taxes that would efficiently finance the basic functions of the state. Despite of many theories, he thinks that high taxation and complicated tax structures mostly affect the poor and the working class because high taxes are preventing growth and the creation of new jobs. Government control and immense public spending are not the solution for economic growth in Croatia. Unfortunately, politicians are under the influence of very powerful groups, and if you want to stop favoring these insiders you have to organize and speak publicly about the problem, and in that way ensure that Croatia can transform into a country of prosperity and opportunity. A big public debt is a real threat to the economic future of Croatia. Financing the public debt means higher taxation which prevents economic growth. VAT in Croatia is at 25%, salary taxes are over 45% and those taxes are killing the economy. Young people will eventually leave Croatia and go to other countries where they can work, prosper and create. A huge public sector – 400.000 employees out of 1.34 million total – means a huge burden that leads to an enormous public debt which lowers the potentials of an economy and inhibits innovation and development. The best way for the state to encourage innovation and investments is to create a secure legal system that would have all entrepreneurs playing by the same rules. That means a flat rate tax system with low rates, simple administration, and strong judiciary. Kibbe does not consider himself a lobbyist, but rather an advocate for free market reforms which aim at making politicians spend tax payers’ money more responsibly. The power of his organization, FreedomWorks, comes from more than 7 million activists. They fight against corruption on a daily basis and work for the better infrastructure of the society. That is how we create a society with better opportunities for our kids and grandkids.


To read the entire Interview in Croatian click here.