Buenos Aires (October 14, 2026) — The Royal Swedish Academy of Sciences announced Monday that Robert E. Hall of Stanford University and Michael Woodford of Columbia University will share the Nobel Prize in Economics “for the microeconomic foundations of macroeconomic stabilization.” Beyond his contributions to macroeconomics, Hall is known worldwide for having designed, together with Alvin Rabushka of the Hoover Institution, the flat tax: taxing all income once, at a single, low rate.
We Are Innovation and the Fundación Internacional Bases, which are working on a flat-tax proposal for Argentina inspired by the Hall-Rabushka model, celebrated the recognition and called for an open debate on comprehensive tax reform in the country.
The idea, published by Hall and Rabushka in The Wall Street Journal in December 1981 and later developed in the book “The Flat Tax”, found its first home after the fall of communism: Estonia adopted a flat tax in 1994, followed by Russia in 2001, Slovakia in 2004, and Georgia in 2005.
A System That Punishes Those Who Produce
Between the national government, provinces, and municipalities, Argentines face more than 150 taxes. Income tax evasion hovers around 50%, and the lost revenue amounts to between 4 and 5 percentage points of GDP per year.
To reverse this situation, the policy paper prepared by both organizations adapts the Hall-Rabushka model to a federal country. Its main pillars are:
- A flat tax rate of 15% for individuals and businesses.
- Income taxed only once, at the source, with no double taxation on savings and investment.
- Full deduction of investment in the year it is made.
- Municipal taxes limited to services actually provided.
According to the report, if Argentina were to reduce its tax evasion rate to Chile’s level – close to 25% – it would recover between 2 and 2.5 percentage points of GDP per year without raising any taxes. The study analyzes the experience of eleven countries that adopted a flat tax, with consistent results: simpler systems, higher tax collection, less tax evasion, and more foreign investment. Georgia, for example, quadrupled its tax revenue.
What the Authors Say
Horacio Arana, Senior Research Fellow at the Fundación Internacional Bases and lead author of the report, explains: “We propose a comprehensive tax reform for Argentina based on a flat tax, inspired by successful international experiences and the pioneering work of Robert Hall. The goal is to simplify the tax system, reduce tax evasion, and encourage investment by eliminating unproductive taxes and consolidating tax categories.”
Marianela S. Mendoza, an innovation-focused tax analyst at We Are Innovation and co-author of the report, notes: “A flat rate of 15% gives taxpayers something they currently lack: clear rules. In a country where tax complexity punishes those who produce and subsidizes tax evaders, we cannot continue to wait for gradual reforms. It is time to take a bold turn toward economic freedom, transparency, and sustained prosperity.”
Federico N. Fernández, CEO of We Are Innovation, president of the Fundación Internacional Bases, and co-author of the report, concludes: “Robert Hall’s Nobel Prize is good news for Argentina. In a country like ours, adopting a flat tax would be a clear statement of intent: to move from a labyrinth of 150 taxes that penalize hard work to a simple and transparent system that rewards innovation and entrepreneurship. Implementing a flat tax sends a clear message to the world: Argentina is committed to prosperity through tax simplicity.”
ENDS
ABOUT FUNDACIÓN INTERNACIONAL BASES
Fundación Internacional Bases is an institution that thinks globally and acts locally. Bases participates in today’s most significant discussions regarding individual freedoms and the market economy. We do not seek to be just another voice, but rather to play an active role in bringing about real change that leads to the triumph of freedom, the transition to a society of responsible individuals, the opening up of the economy, and the reduction of the government’s role in our lives. To this end, we actively collaborate with think tanks, individuals, educational institutions, new media professionals, and all those who seek to achieve full freedom. For more information, visit https://fundacionbases.org.
ABOUT WE ARE INNOVATION
We Are Innovation is a dynamic network of individuals and institutions who deeply believe in innovation’s power to drive progress and solve the world’s most pressing problems. With over 60 think tanks, foundations, and NGOs based worldwide, We Are Innovation represents the diverse voices of a global civil society committed to advancing human creativity, adopting new technologies, and promoting innovative solutions. Through our collaborative approach and cutting-edge expertise, we are driving global transformative change. To learn more about our work, visit us at https://weareinnovation.global/.
