The Greek crisis has cost taxpayers across Europe hundreds of billions of euros, compounded a huge recession which has plunged the country into vast unemployment and strangled the Greek private sector by burdening it with incredible amounts of taxation.
In a world where tax codes are riddled with loopholes and typically run into the thousands of pages, it should not come as a surprise that corporations would seek guidance on their potential tax liabilities prior to setting up shop in a country – and that governments would be eager to reassure investors.
The benchmark for assessing the legitimacy of any tax measure is the overall tax regime of the country in question, while the tax regimes of other Member States appear to be irrelevant in this context.
The Commission should work to preserve the highest degree of tax competition between Member States. The CCCTB poses the danger of fundamentally hindering this vital feature of the internal market, and should therefore be reconsidered.
The UK tax system is incoherent. Even ignoring benefits styled as tax credits and the withdrawal of child benefit, taxpayers can face seven different marginal rates of personal tax. In the long term, aiming for significantly lower levels of government spending could facilitate substantial marginal tax rate cuts, and the government should aim to return to a tax system with two, or preferably one, overall marginal rates of tax on income.
It is vital to understand that the impact of nutrition taxes on the consumption of nutritionally poor food is unclear and that there is a sizable risk of instituting additional constraints on the country’s economic activity without getting the expected public health benefits.
It is widely acknowledged that Europe lags behind when it comes to digital entrepreneurship. The largest players in the digital economy are based elsewhere, primarily in the US, Japan, Israel, and even China.
The measures proposed by the European Commission are not suitable for achieving a single market in card payment services. On the contrary, the measures proposed by EC would be harmful. The regulations would have the greatest negative effect on consumers, who are likely to incur relatively higher card handling fees, and to lose part of discounts or incentives.