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EU considers levying taxes directly

EU considers levying taxes directly

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K

Germany

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EU considers levying taxes directly


The European Commission wants EU member states to consider allowing it to levy direct taxes - a move that could ease the burden on national budgets.

The EU's Budget Commissioner, Janusz Lewandowski, said he would present some options next month for direct EU taxes.

Taxes on aviation, financial transactions and CO2 emission permits are all possibilities, he told the daily Financial Times Deutschland.

However, the UK promptly rejected the idea.

Historically, national governments levy taxes in the EU.

"I'm hearing from a number of capitals, including important ones like Berlin, that they would like to lower their contributions [to the EU]," Mr Lewandowski said.

The 27 EU member states pay a fixed contribution to the EU budget, based on their gross domestic product and a percentage of their sales tax (VAT).

This year Germany's transfer to the EU budget - the largest contribution - is about 21bn euros (£17.5bn).

Full article: http://www.bbc.co.uk/news/world-europe-10912754

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A move towards a "United States of Europe"? Or simply a move towards a more efficient and fair method of gathering the funds for the EU budget (the budget is just over 1% of the member states' GDP)? Does this have any chance of succeeding at all, considering the opposition from Eurosceptics?

E

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It would be more efficient to tax people directly instead of having to go through the governments to get their money.

The only way it would be less of a burden on the nations would be that it is a new tax on the population. Each nation can keep its old taxes and we'll just throw a new one on the citzens. Just what every nation needs, more taxes. But hey, I suppose Europeans have a greater love for paying taxes than the US.

sh76
Civis Americanus Sum

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Originally posted by KazetNagorra
EU considers levying taxes directly


The European Commission wants EU member states to consider allowing it to levy direct taxes - a move that could ease the burden on national budgets.

The EU's Budget Commissioner, Janusz Lewandowski, said he would present some options next month for direct EU taxes.

Taxes on aviation, financial transactions ...[text shortened]... this have any chance of succeeding at all, considering the opposition from Eurosceptics?
Seems more fair than levying txes on nations based on GDP.

I still wouldn't like it much if I were Dutch or British or German.

K

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Originally posted by sh76
Seems more fair than levying txes on nations based on GDP.

I still wouldn't like it much if I were Dutch or British or German.
Countries with a high GDP now pay more per citizen than poorer countries. So for example the Dutch and Germans pay more than the Portugese or Greeks. So this sort of measure might decrease the amount the Dutch and Germans pay (the British have a special place within the EU).

E

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If taxes are based on a percentage (as they are in the US) then the rich vs poor thing takes care of itself. Of course you could be progressive and charge the richer countries at a higher rate, which is a double wammy.

sh76
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Originally posted by KazetNagorra
Countries with a high GDP now pay more per citizen than poorer countries. So for example the Dutch and Germans pay more than the Portugese or Greeks. So this sort of measure might decrease the amount the Dutch and Germans pay (the British have a special place within the EU).
Yes, that's why it's more fair.

If I were Dutch or German or British, I would not enjoy being forced to systematically pay anything towards the Greek economy.

AThousandYoung
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Originally posted by sh76
Yes, that's why it's more fair.

If I were Dutch or German or British, I would not enjoy being forced to systematically pay anything towards the Greek economy.
Did you know that New York (and California) systematically pays towards the economies of other states?

http://www.taxfoundation.org/research/show/266.html

sh76
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Originally posted by AThousandYoung
Did you know that New York (and California) systematically pays towards the economies of other states?

http://www.taxfoundation.org/research/show/266.html
I could be wrong, but I do not believe the German and Dutch people have signed up to become states in the United States of Europe. I do not believe this is the initial intent of the EU.

w

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Originally posted by sh76
Seems more fair than levying txes on nations based on GDP.

I still wouldn't like it much if I were Dutch or British or German.
Those that did not join the EU must be patting themselves on the back for not doing so. What a mess.

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