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Are You In Favour Of A European Tax? If So Or Not, Why?
Within the EU, governments retain sole responsibility for levels of taxation on personal incomes and company profits. What a EU taxation policy would do is ensure that tax rules are consistent with the goals of job creation, the EU’s competitiveness, the single market and free movement of capital.
Some argue that member states are best placed to take appropriate economic measures for their country. Others argue that greater economic and fiscal coordination is required between member states.
So are you in favour of a European tax? If so or not, why?
For more information read the Answers team blog: http://uk.blog.360.yahoo.com/blog-qT1KKP…
I agree that member states are best placed to take appropriate economic measures for their country.
Harmonisation of VAT, Income TAX, or Corporation TAX –
Firstly takes away what I believe in principle to be a necessary freedom of each member nation to govern it’s own economy as it sees fit.
Secondly, as is demonstrated by the situation in the USA, individual states are given a certain amount of freedom in how they tax individuals and corporations, even though they’re far less independant than EU nations are. This is a situation that in the USA has been arrived at through long periods of trial and error in their governance and therefore bears out the theory that individual nations in the EU would also be, in practical terms, better placed to decide such matters for themselves – escpecially since they’re even more independantly governed and varied in culture, economy, direction, etc.
Thirdly, a harmonisation across the EU, would in itself be a wasteful and time consuming expense. Particularly when considering the added complexity of making it work across the different currencies valid in the EU (GBP, DKK, SEK, EUR), the difficult and lengthy process to agree to the governance structure (ie. who decides the tax rate & structure, and how).
Fourthly, I do not believe it would be practical or even possible to get EU countries to agree to harmonised rates in an EU that contains nations with such widely differing viewpoints and political & economic approaches. E.g. Denmark has the highest taxation of individuals in the world, so one very extreme socialist approach there, contrasted with the Ireland where employees pay the lowest direct tax in Europe.
However, as is usual in such matters, I believe a robust discussion of this involves consideration of more complex solutions/situations than a simple yes or no we should have harmonised tax or not. For example, something worthy of consideration for EU guidelines, may be tackling unfair competition in corporate taxation. For example the preferential tax treatment that Ireland has applied to certain types of company and geographical area, is in effect disguised state aid. And EU guidelines, harmonised across all member states to mark this out as unfair tax competition, could potentially be useful – though I would be very guarded against anything prescriptive. For example (unrelated analogy to illustrate my reasoning), the UK & EU, in the area of financial markets has found success recently relative to the famous home of finance in New York, largely due to the American SEC creating more prescriptive and prohibitive regulations, while the EU, FSA, etc. have created less prescriptive regimes opening markets to more global business and greater success.
Therefore EU Directives may not necessarily be the best approach to dealing with even the subject of unfair tax competition.
Another area where EU harmonised tax principles could be worth considering is, abolishing tax on cross-border payments of interest and royalties between associated companies, thereby saving them much paper work and overhead and making them generally more cost effective and generally creating a competitive edge and incentive for all companies to do business in the EU. I foresee this in particular as a win-win situation for every EU member nation.
A more contentious possibility – which for now I would say is worthy only of tentative discussion, would be some sort of consistent approach to so called “green taxes” – this could greatly make our attempts to ‘save the world’ more efficient and possibly cost effective. Although this would be a far more complex discussion that I wouldn’t get into here.
So in summary, I’d say a definite “No” to harmonised VAT, Income Tax, or Corporation Tax, or even Capital Gains Tax, or National Insurance, etc. But, further discussion of non-prescriptive tax agreements on unfair tax competition, abolishment of paying tax on cross border royalties and commissions, and some discussion of consistent approaches to green taxes, would certainly be welcome.
No taxation without consent> I do not know who sets or agrees tax rates but I bet my bottom dollar it will not be MEP’s So I am not in favour of an REC tax. In fact I’m not in favour of that nasty corrupt organisation at all
Sadly, as another answerer has said, as soon as some Brits hear the word ‘Europe’ it seems to give them carte blanche to slag off the EU and all it stands for.
Although I am neutral as far as the EU is concerned (I can see both positive and negative reasons for staying) any form of tax would be highly conscientious. It would also irritate Daily Mail readers who have nothing better to whinge about (apart from immigration, Diana and the abortion time limit!).
In short, I can’t see it being popular.
I am opposed to a European based tax system. Such a tax system would disable the already weakened power of the House of Commons to act on behalf of the people to raise tax and/or reduce it at will.
UK would become a slave of the European Parliament.
I oppose!
no if thay get it wrong all the countrys go into reaction and millions loose there jobs
No. Never. I am not European, I am English. I will not fund eurononsence! I do not wish to become a citizen of a federal Europe.
You can tell the bunck of dictators in Brussels to keep their theiving hands off my money. the sooner we are out the better the average person paying tax will find themselves about £1000 better off per year.
right on Mrs G. And that was before I had read the answer!
4% of the VAT we pay already forms a “European Tax”.
F..Off …. I am already taxed to death … and while we are on the subject…. our booze is dearer our Cigarettes are up to 3 times more expensive …we produce Oil but – god kows how we pay nearly £1 a litre for the stuff… how much do you pay for it in Europe again ..? we have a pathetic road & rail network… the weather is piss… need I go on – got the picture ?
NO. Absolutely not. This will only bring us closer to a Federal Europe.
Taxation isn’t the answer to a more competitive Europe. Sovereign, independent countries with open and free trade is the answer.
Our fiscal business, our damn BUSINESS!
Asolutely…if it meant allieviating poverty and investing in coutries – across europe..you bet i am.
Which kind of Tax is being debated? Vat has been harmonised to some degree for a long time.
” People always com plan about tax, “even when they also ask governments to spent more money.
I would be prepared to pay tax to a Government, even if it were not one of my choice, providing I had a vote. that is democracy.
I would feel no moral ob legation in paying tax to an abstract bureaucracy such as the EU.
Wholeheartedly. All Europeans should pay a tax 85 % to be shared out between UK and the various state of what was the British Empire and 15% to USA. There should be four rates.
The highest rate should be paid by the French who betrayed us, followed by Germany and her allies, the neutrals who profitted from the war and the lowest rate by the countries we liberated. (The Russians got their cut at the time.)
I can’t believe that anyone thinks the Common Market does anything but line the pockets of its employees and their masters and should get even more money for them.
The EU is a rotten apple in a cart of good apples. The sooner these apples are prized apart, the better the apples (or countries) have a chance.
The EU is bad for every person on Earth unless you are employed by them.
I am not in favour for two reasons;
1. EU competitiveness is destroyed by lack of competition between the nations that comprise it. You cannot have competitiveness between Europe and the rest of the world if you don’t have competitiveness between the countries of Europe. If economic rules work outside Europe they must work within it.
2. I am not in favour of unelected people being given carte blanche to distribute my money according to their own senses of priority.
The second is very much related to the first. If they don’t grasp such simple concepts, they are not to be trusted with my money!
The ERM was a disaster, but a pre cursor for any frame work that would integrate EU wide fixed taxation. At the time the tories were blamed for it, whereas the EU played an equal part in the bleak 90′s economic recession.
And don’t bleat on about a ‘single common market’. The UK was conned into voting for it back in the 70′s, under Ted Heath. It was only ever the first step in creating a European superstate – to rival the US.
There was clever phrasing in your question, heading misleading. We all know we would not pay the same rates of tax, that would be impossible – some EU countries are richer than others; and others are extremely poor. So in the end the richest countries would have to shoulder the burden. Lets all share another recession!
Typical of the EU, waffle and confuse. Attractive gravy train though and a magnet for fraud and corruption.
On the subject, when will the EU produce annual financial deficit audits? Have they weeded out the widespread fraud and corruption? When will they stop giving jobs to failed and sacked politicians who have been mired in national scandal; Mandelson for example? Don’t trust them much with handling our national finances!
We’re not even part of the continent anyway!
I say NO to EU universal taxation.
But YES to continued membership IF it really was just an open common market.
(Cafcnil had the best point – re. comparisons, North Korea & EEC)..
And NO to the ugly Euro.. and that rag of a flag..
People are okay, politicians and sycophants are the blight of it all..
NO!!!!!!!!!Are you for REAL?We are already taxed,taxed and more tax! The net annual cost to the UK of EU membership is a staggering £4,699,000,000.00 in 2007, according to government published figures. In 2007 the UK will contribute £12.6B to Europe, receive back £4.4B in grants and £3.5B in rebate, leaving a net cost to the British TAXPAYER of £4.7B, almost £100 million per week! All of which makes us a top paymaster of Europe, second only to Germany in net contributions.The price of belonging to the EU is crippling. And they want more?……..The EU is nothing but a cumbersome, incompetent, ridiculously corrupt, incredibly arrogant, and unelected Euro-bureaucracy. Perhaps you should tell THAT to your masters in Brussels…
http://www.iwantareferendum.com
http://www.proreferendumrally.co.uk
If the EU attempts to overtake the taxation of national governments there will be war.
Not by the people, who after all don’t care who takes the tax money, just how much they have to pay. But by all the governments who will have to give up the right to charge tax.
They will use every trick, scheme and stroke imaginable to protect their own interests, particularly when it comes to money.
In the case of England, do you think that officials, who have the bare faced gall to continually vote for pay rises, longer holidays and greater perks for themselves, whilst urging pay restraint in workers who earn a fraction of what they do, will accept losing control of the purse strings?
The EU is either a common market, or an alliance, either way one of its benefits is to reduce the chance of war between close neighbours, if this proposal is acted upon it will result in war.
Your question is deliberately badly phrased. The implication is that this will be an additional tax whereas the detail you provide clearly explains that this is not the case but several people who have answered already have assumed you are talking about an additional tax, and you are probably going to use their answers to support your argument.
The UK is the most highly taxed country in the EU thus it should be that, if a EU tax system were to replace the UK tax system, people in the UK would pay LESS tax. I am so tired of the way Brits are constantly misled about ‘Europe’ – the UK is IN Europe – where else can it go?
We pay to much to you BLOOD sucking scum as it is. European TAX you already take it so shut up & get lost with your propaganda, “Oh let’s bring in a new directive about light bulbs, YOU will all have to purchase energy efficient bulbs in the magic year of 2010. SO WE’RE going to TAX them.”
WE don’t want to have anything to do with you so BOG OFF.!
I’m in favour of getting us out of the EU, full stop. It’s their fault we’re losing our national identity.
It won`t work, it can`t work, it`s not wanted, the EU is a joke.
The future for Europe is a strong Union and to ensure it is strong it needs tax raising powers.
No, because the E.U. is a corrupt organisation which is run akin to the former Soviet Union.
Most Brits want NOTHING to do with the EU. That’s all I have to say on the matter.
We have a European tax. It is collected via the normal tax system then passed over to Brussels as our contribution. This is more efficient than introducing another system on top of the current revenue system.
Personally, I’m indifferent. But in the UK anything prefixed by the words Europe, Euro or EU don’t tend to go down very well (we’ve only just started to like the Channel tunnel and the Eurostar). Central taxation tends to suggest a central government, shifting the EU away from it’s current quasi-intranational/intergovernmental roll. So really this questions comes down to whether or not you want a single European state, again, a little less than popular here in the UK and I’m guessing quite a few other European countries.
I’m not in favour of a European tax. The EU has enough powers already, and personally I think Britain should get back to its Commonwealth – we were far happier then.
I think its a good idea its not just an add on tax is it? Its the EU taking over the tax system for all the countries rather than leaving it to just our government, i think it would help intergration and they will prob do a better job than they are currently doing in the UK!
Mention of the word tax is bound to get most people saying no. But I think it’s imperative we have a European tax system, to replace member states taxation systems.
The EEC was set up with the aim of treating the whole of europe as one state when it comes to jobs, trade etc. To achieve this it is essentail to equalise tax rates across Europe. (Think I’m talking rubbish? then you’ve never been on a booze cruise). Whilst some governments of individual member states would probably agree a harmonisation of tax rates others won’t. The UK is one that won’t because the UK has one of the highest tax burdens in Europe therefore Gordon would lose too much money.
The only way I can see to harmonise rates is for Europe to actually do something and take control. All tax should then be paid to Europe and not local governments.
While I’m at it it’s about time that the UK joined the Euro. It would make it easier and cheaper to trade with Europe.