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EU tax harmonisation

Jesus Civs

Civaholic
Joined
Jan 10, 2006
Messages
398
Location
Ireland
The EU, at some stage in the future, will want to impose a universal tax system on each member state.

Do you think this is a good idea?
 
Once the economies are sufficiently similar, a common tax system for basic services (infrastructure, health care, ...) seems like a good idea. Of course, states should retain the right to collect additional taxes, as they see fit.
 
When they brought in the Euro, those member states lost their control over interest rates.

Countries like Ireland, Spain and Portugal then shagged themselves up with too much cheap credit because France and Germany needed low interest rates.

Selling out your tax system would essentially mean the EU would control everything economic and business related. Countries would effectively be left with nothing!
 
The EU, at some stage in the future, will want to impose a universal tax system on each member state.

Do you think this is a good idea?

This won't ever happen. EU might agree that certain part of the tax money would be given to the EU ("Eurotax"), but it would be foolish if it forced its members to adopt a single rate.
 
This won't ever happen. EU might agree that certain part of the tax money would be given to the EU ("Eurotax"), but it would be foolish if it forced its members to adopt a single rate.

agreed.

I would really favor the EU being sponsored by a direct tax (perhaps a 1% sale tax) instead of the money coming from the budgets of the individual states. At the moment, it really isnt that transparant who is paying how much for which reason.
 
Tax harmonisation will happen.

A universal tax system is something completely different, that could only happen if the EU were a single nation. Therefore, no.
 
Pro: It would mean lower taxes on work and higher corporate taxes in Austria
Contra: It would undermine Austrias economic strategy to attract corporations from Germany with lower corporate taxes.

All in all I would be for an harmonisation as it would partially end the downward spiral of corporate taxes (+force those "tax free havens" to adopt the new tax system as well).
 
agreed.

I would really favor the EU being sponsored by a direct tax (perhaps a 1% sale tax) instead of the money coming from the budgets of the individual states. At the moment, it really isnt that transparant who is paying how much for which reason.

Exactly. Moreover, if it were the people who would fund the EU (directly), there would be more pressure to make it more democratic, closer to the people.
 
Pro: It would mean lower taxes on work and higher corporate taxes in Austria
Contra: It would undermine Austrias economic strategy to attract corporations from Germany with lower corporate taxes.

All in all I would be for an harmonisation as it would partially end the downward spiral of corporate taxes (+force those "tax free havens" to adopt the new tax system as well).

Which is why certain countries will never agree with it :)
 
Which is why certain countries will never agree with it :)

Well...the prospect of lower taxes on income would be very popular and put pressure on politicians. But then some parties are affiliated strongly with big business and they only care to keep corporate taxes low. So the ratio of populist versus bought politicians would decide if EU harmonises the taxes. Anyways, the any-member-has-veto situation means that a couple of black sheep like Austria can blockade this idea (+ EU is deliberately slandered into unpopular status by our politicians).
 
Well...the prospect of lower taxes on income would be very popular and put pressure on politicians. But then some parties are affiliated strongly with big business and they only care to keep corporate taxes low. So the ratio of populist versus bought politicians would decide if EU harmonises the taxes. Anyways, the any-member-has-veto situation means that a couple of black sheep like Austria can blockade this idea (+ EU is deliberately slandered into unpopular status by our politicians).

EU is a scapegoat in any European country ;)
 
+force those "tax free havens" to adopt the new tax system as well.

Isle of Man, Jersey, Gibraltar etc aren't actually governed by EU laws. That's the beauty about them!
 
Isle of Man, Jersey, Gibraltar etc aren't actually governed by EU laws. That's the beauty about them!

I know that. But threaten them with trade restrictions/ penalties and they will submit. And I don´t see beauty in causing lost tax revenue and thus being indirectly responsible for higher taxes in other countries.
 
I know that. But threaten them with trade restrictions/ penalties and they will submit. And I don´t see beauty in causing lost tax revenue and thus being indirectly responsible for higher taxes in other countries.

We probably shouldn't that, because it is using economic power to dominate smaller entities against their will which is a) Wrong, especially as the tax havens tend to be peaceful, democratic and nice places to live if you can afford it, b) the very thing everyone berates Russia and China for doing, c) setting a very bad precident, and d) not goign to happen as a lot of movers and shakers that infleunce policy keep their money there.
 
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